Bosideng International Holdings Ltd. (03998.HK), China’s largest down apparel company, is joining hands with leading Japanese trading group ITOCHU Corp. to transform itself into an integrated global brand operator.
The two companies signed a strategic alliance with CITIC Securities on Monday, according to a media statement.
ITOCHU will appoint an executive director for the venture and establish a team to help improve Bosideng’s overall business, it said.
Also, the team will pave the way for the launch of high-end apparel owned by ITOCHU which operates more than 150 European and American brands such as Paul Smith, Converse, LeSportsac and Vivienne Westwood.
Gao Dekang, chairman and chief executive of Bosideng, said the venture will develop non-seasonal products into potential growth drivers.
“Our aim is to become an internationally renowned integrated apparel brand operator,” he said.
ITC SPC, a joint venture between ITOCHU and CITIC Securities, has agreed to invest in Bosideng, according to an April 24 filing to the Hong Kong stock exchange.
Bosideng will issue 1.3 billion new shares, equivalent to a 13.99 percent stake, to New Surplus International Investment Ltd., which is indirectly controlled by Gao, for HK$1.54 billion (US$199 million) or HK$1.19 per share.
The transaction price is unchanged from the stock’s closing price on April 24 but is 9.17 percent higher than its HK$1.09 average price during in past five trading days.
The deal will take place after ITC SPC subscribes to New Surplus preference shares worth 30 billion yen (US$252 million), pending certain other conditions.
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