SMCP hits near two-year high after favourable court ruling

** Shares in SMCP SMCP rise as much as 7.7% to their highest price in almost two years after a ruling in Singapore that could conclude a four-year legal dispute that has hung over the French luxury group

** In 2021, SMCP creditors launched legal proceedings alleging that European Topsoho, controlled by former SMCP chairman Yafu Qiu of Chinese conglomerate Shandong Ruyi, had improperly transferred part of its stake to a holding company run by Qiu's daughter during the group's financial difficulties

** After a UK court declared the sale invalid in July last year, Singapore's High Court on Friday ordered the 15.5% stake returned, pending appeal

** "Speculation is back on for SMCP," brokerage Midcap Partners says, seeing the ruling as a major step towards a potential takeover of the group

** "The discount on the stock related to its shareholder structure could soon disappear," the broker adds, noting the ruling would clear the path for creditors, including BlackRock and Carlyle, looking to sell