On Friday, Hong Kong casual clothing brand BOSSINI and Feihua China Group, controlled by Mr. Li Ning, issued a joint announcement. Feihua China will Yue Development Co., Ltd. acquired 66.6% of BOSSINI’s shares at a price of HK$46.62 million.
The announcement stated that Longyue Development Co., Ltd. agreed to acquire 1.093 billion shares held by BOSSINI’s major shareholder Luo Jiasheng at a price of HK$0.043 per share. Accounting 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 pay HK$0.043 per share for all issued shares of BOSSINI. Unconditional cash offer for sex.
The purchase price per share is higher than Thursday’s closing price HKD 0.148 represents a discount of 70.95%.
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 owned by Luo Jia Sheng’s nephew Luo Zhengjie’s company Keystar is owned.
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.
Over 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 the long-term prospects of BOSSINI. The company stated in the announcement: “With the increasing attention of the public of all ages, Health and healthy lifestyle, Feifei China Group believes that there is huge market potential in China’s apparel consumer market. In addition, the management team of the consumer goods business has rich experience, and BOSSINI is well-known in the region. The management of Feifei China believes that BOSSINI and Feifei China There will be substantial synergies between the Group’s businesses in terms of product cooperation between companies within the Group, as well as sales after the completion of the acquisition. Leveraging on the market position of Feihua China Group in China, the Board of Directors of Feihua China also believes that the merger will achieve greater economies of scale and market coverage The benefits in other aspects will benefit BOSSINI Group, and even Feihua China and Feihua China shareholders.”
Currently, most BOSSINI 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.
Feifei China said its board of directors intends to approve Mr. Li Ning’s broad business, especially It is a distributor network that has been established in different regions in China, and its strong business base in the sports-related and apparel industries has expanded 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.
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