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Bosideng Marches Into Women'S Clothing Business &Nbsp; 890 Million Buys JESSIE 70% Stake.

2011/10/31 15:55:00 15

Down garment manufacturer

Bosideng

(03998) announced the march into women's clothing business.

The company spent 890 million yuan on the acquisition of JESSIE 70% stake in the domestic women's clothing brand, paying cash and 235 million shares. The seller guaranteed a net profit of 85 million yuan after tax this year, and an average annual growth of 25% over the 3 years from next year. The price earnings ratio of 2011 was about 10 times.

Gain 3 years of profit guarantee increased by 25% on average

"JESSIE" was founded in 1999. It is a high-end clothing brand for women aged 28 to 45. As of the end of September, it has 81 self operated stores and 172 franchised stores in Beijing, Shanghai and Guangzhou.

Its controlling shareholder, Dehui company, not only owns many women's clothing brands such as "JESSIE" and "Le Mauve", but also provides women's clothing design, brand marketing and planning services. The net profit in 08 and 09 years has reached 54 million 396 thousand and 31 million 530 thousand yuan respectively.

Cash plus shares pay a premium of more than 49%.

The acquisition of Target Corp Di Hui and

Long Hui

Global (never started the business, will be pferred to the above women's clothing brand to complete the paction), the total cost is 890 million yuan (or adjusted, but not more than 945 million yuan), of which 728 million 500 thousand yuan will be paid by Bosideng to the seller Di Hui International issued 235 million shares, the price per share is HK $3.1, compared with the previous trading day (October 28th) closing price 2.07 HK $49.76% premium; the rest is paid in cash.

Seller 150 million interest free loan as guarantee

After the completion of the paction, the seller will hold a 2.93% stake in Bosideng and become the second largest shareholder.

According to the agreement, the company guaranteed that Target Corp's net profit reached 85 million, 108 million 800 thousand, 136 million and 166 million yuan respectively in the 4 years from the beginning of this year, with an annual increase of 56%, 28%, 25% and 22%.

Bosideng pointed out that through the acquisition of women's clothing industry to expand and introduce non seasonal clothing brand, to enhance profitability.

complete

Buy

After that, it will continue to sell "JESSIE" brand women's clothing in China in self run and affiliate mode, and expand to the international market at the right time. It is estimated that the brand will expand about 200 new stores in 3 years, and the total number of stores will exceed 400.