Bosideng International Holdings Limited
BOSIDENG: ITOCHU and CITIC Securities’ joint venture to buy 13.99% indirect equity stake in Bosideng – The Deal will bring global experience to Bosideng and strengthen its global competitiveness
For immediate release
波司登國際控股有限公司 ITOCHU and CITIC Securities’ joint venture to buy 13.99% indirect equity stake in Bosideng *** *** (April 24, 2015 – Hong Kong) – Bosideng International Holdings Limited (“Bosideng”, or the “Company”, stock code: 3998, which together with its subsidiaries is collectively referred to as the “Group”), the largest down apparel company in mainland China, is pleased to announce that a joint venture between ITOCHU Corporation (the third largest trading firm in Japan) and Goldstone Investment, the investment arm of CITIC Securities has reached an agreement to invest in Bosideng. ITC SPC, the joint venture, will do so by investing in New Surplus International Investment Limited (“New Surplus”), which is presently indirectly wholly-owned by Bosideng’s Chairman, Mr. Gao Dekang. New Surplus, in turn, will subscribe for approximately 1,302.50 million new shares of Bosideng at HK$1.19 per share for a consideration of HK$1,549.98 million. The share subscription price enjoyed a premium of approximately 25.26% over the average closing price of HK$0.95 per share for the last 30 consecutive trading days immediately prior to the date of subscription agreement. The subscription shares represent approximately 16.27% of the existing issued share capital of Bosideng and approximately 13.99% of its enlarged issued share capital following the share subscription. The net proceeds from the share subscription will be HK$1,544.97 million. The capital raised will not only strengthen its financial position and financing capabilities; Bosideng will also utilize the proceeds to further develop its core businesses and introduced new brands to strengthen non-down business. Besides, the Group also intends to invest in opportunities that well match the Group’s development together with ITOCHU Corporation. Upon the completion of the subscription, New Surplus will assign representative from ITOCHU Corporation to be Bosideng’s executive director. Mr. Wang Dongming, Chairman of CITIC Securities commented, “Bosideng is a leading operator of down apparel in China with a well-renowned brand. With its solid operation and financials, it is in line with CITIC Securities’ strategic direction to invest in companies with great development prospects. By collaborating closely with ITOCHU Corporation and together with CITIC Securities’ strength in the international equity markets, we believe Bosideng has huge room for growth. We are honoured to be part of this investment with strategic meaning.” Mr. Gao said “The subscription will bring in ITOCHU Corporation and CITIC Securities such two strong investors to the Group, it demonstrates their recognition towards Bosideng’s operation and future prospects. The subscription will bring in global experiences and expertise from ITOCHU Corporation and CITIC Securities to the Group. Leveraging ITOCHU Corporation’s experience in apparel wholesale and retailing, we believe Bosideng will be able to enhance its overall management capabilities. Moreover, the transaction will also allow the Group, ITOCHU Corporation and CITIC Securities to leverage on respective strengths, and sharing of resources to explore potential strategic cooperation and investment opportunities in the future to facilitate mutual business success.” – End – About Bosideng International Holdings Limited: Bosideng International Holdings Limited (the “Company”, together with its subsidiaries is collectively referred to as the “Group”) is the largest down apparel company in the PRC. Its top four down apparel brands, namely Bosideng, Snow Flying, Combo and Bengen accounted for 37.8% of the PRC down apparel market# in 2013. According to China Industrial Information Issuing Center and the National Bureau of Statistics of China, Bosideng has been the leading PRC down apparel brand for 19 consecutive years from 1995 to 2013. Leveraging its outstanding brand value and extensive sales network, the Group is actively exploring opportunities to acquire non-down apparel brands with high potential for development and good reputation. Currently, key non-down apparel brands of the Group include Bosideng MAN, JESSIE ladies’ wear and Mogao casual wear. # Among the 30 largest down apparel brands About CITIC Securities: For further information, please contact: iPR Ogilvy Ltd. End of Press Release +++++ Document: http://n.equitystory.com/c/fncls.ssp?u=AKYAWNIJXC Document title: BOSIDENG: ITOCHU and CITIC Securities’ joint venture to buy 13.99% indirect equity stake in Bosideng Key word(s): Miscellaneous 24/04/2015 UTC+8 Dissemination of a Press Release, transmitted by EQS TodayIR – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com |
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