Tech Pro Technology Development Ltd. (03823.HK), a maker and distributor of LED and other electronic products, has bought French football club FC Sochaux to help penetrate the European market, the Hong Kong Economic Journal reported, citing company chairman Li Wing-sang.
The company bought the Group B team from Peugeot for seven million euros (US$7.69 million). The team, which holds 20.19 million euros in net assets at the end of 2014, will distribute 6.95 million euros to its previous shareholders as special dividend.
Li said the deal is subject to a lock-up period of three years. The deal also requires Tech Pro not to downgrade the team to Group C, among other conditions.
The company hopes the team will contribute advertising revenue and help the company promote its LED brand Ledus in Europe.
Tech Pro generated 140 million yuan of revenue last year, of which 70 percent came from mainland China and 13 percent from Spain.
Last year it posted a net loss of 217 million yuan, including goodwill impairment of 96.04 million yuan as a result of its purchase of five subsidiaries.
The football team lost 13.19 million euros for the fiscal year ended June last year.
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