Baselworld asks investors to accept rescue package

Lupa Systems, an investment company run by James Murdoch, younger son of Rupert Murdoch, has put forward a rescue package to MCH Group AG, owners of Baselworld and Art Basel to save the company, following the impacts of Coronavirus and the exit of Rolex, Bulgari and the Swatch Group from the show.

According to Bloomberg, with the abandonment of such major players from the show, combined with the cancellation of both Baselworld and Art Basel this year, the MCH Group is anticipating a fall in sales of up to $180 million.

The deal with Lupa Systems is thought to be of around CHF 100 million for 30-44% of the group and at an Extraordinary General Meeting to be held on 3 August 2020, the election of James R. Murdoch (Founder and CEO Lupa Systems), Jeff Palker (Managing Partner and General Counsel Lupa Systems) and Eleni Lionaki (Partner Lupa Systems) to the Board of Directors will be proposed.

In addition to the capital increase, the Canton of Basel-Land and the Basler Kantonalbank have offered to extend the repayment period of their CHF 35 million and CHF 40 million loans by five years.

In a bid for financial and structural strengthening to overcome the corona crisis and implement the long-term strategy MCH Group has said that “If this overall package were to fail, extremely little time would be left for developing and implementing alternative restructuring solutions before it was too late.”

Baselworld, MCH Group