On Friday, Hong Kong casual clothing brand BOSSINI and Feihua China Group, controlled by Mr. Li Ning, issued a joint announcement that Feihua China will acquire BOSSINI66.6 through its subsidiary Longyue Development Co., Ltd. for HK$46.62 million. % shares.
The announcement stated that Longyue Development Co., Ltd. agreed to acquire the major shareholder of BOSSINI at a price of HK$0.043 per share. The 1.093 billion shares held by Luo Jiasheng account for approximately 66.6% of its total share capital, totaling HK$46.62 million.
And as part of the transaction, Longyue Development Co., Ltd. must make a mandatory unconditional cash offer for all issued shares of BOSSINI at HK$0.043 per share.
The purchase price per share represents a 70.95% discount to Thursday’s closing price of HK$0.148.
It is reported that Longyue Development Co., Ltd. is 80% owned by VC Consumables, a wholly-owned subsidiary of Feifei China, and the other 20% is held by Keystar, the company of Luo Jiasheng’s nephew Luo Zhengjie. .
BOSSINI was first launched in Hong Kong in 1987 and listed on the Stock Exchange in 1993. Luo Jiasheng’s family has been the single largest shareholder of BOSSINI since its listing.
In the past two decades, BOSSINI has established an extensive international business platform and distribution network. As of December 31, 2019, it had a total of 287 directly operated stores and 799 export franchise stores in 30 countries and regions around the world.
Hong Kong and Macau have always been BOSSINI’s main markets, contributing more than 60% of total revenue in the past three fiscal years. However, revenue from Hong Kong and Macau decreased from approximately HK$1,394.5 million in 2017 to approximately HK$1,304.1 million in 2018, and further decreased to approximately HK$1,052.1 million in 2019. This is mainly due to weak consumer demand and the impact of the Sino-US trade war, which has led to sluggish retail environment and market confidence in Hong Kong. The weakening of the renminbi and social incidents since June 2019 have further exacerbated uncertainty and adverse effects, making The already fragile market performance has worsened.
However, Feifei China expressed its positive attitude towards BOSSINI’s long-term prospects. The company stated in the announcement: “As the public of all age groups are increasingly paying attention to health and healthy lifestyles, Feifei China China Group believes that there is huge market potential in China’s clothing consumer market, coupled with the rich experience of the management team in the consumer goods business, and BOSSINI’s reputation is a household name in the region. The management of Feihua China believes that there is a strong connection between BOSSINI and Feihua China Group’s business. Product cooperation between intra-company companies and sales after the completion of the acquisition will generate a large amount of synergies. With the market position of Feihua China Group in China, the board of directors of Feihua China also believes that the benefits of the merger in terms of economies of scale and market coverage will be beneficial to BOSSINI Group, and even Feihua China and Feihua China shareholders.”
At present, most of BOSSINI’s stores in mainland China are located in Guangdong Province. In addition, BOSSINI announced in March this year that it will cease operating its Taiwan business around July 31 this year.
Feibu China stated that its board of directors intends to leverage Mr. Li Ning’s extensive business, in particular the distributor network that has been established in different regions of China, and his strong presence in the sports-related and apparel industries. business base and expand BOSSINI’s distribution network to other cities in China. In addition, it intends to use popular marketing tools to promote BOSSINI’s products and open stores on popular online sales platforms. </p