Related News
Bosideng soars on Itochu and CITIC Securities’ buying
Online Edition
CHINA mainland's largest down apparel company Bosideng International Holdings surged more than 10 percent in the morning trading on Monday in Hong Kong, as investors weigh on company's share deal with Japan’s third-largest trading house Itochu Corp and China’s state-owned CITIC Securities' joint venture.
Bosideng said the joint venture ITC SPC will invest a combined 1.6 billion yuan (US$250 million) to buy nearly 14 percent of company's indirect equity shares from New Surplus International Investment, which is wholly owned by Bosideng’s chairman Gao Dekang, according to Bosideng’s filing released to Hong Kong Stock Exchange on Saturday.
The latest move of buying shares from Bosideng marks the first step for the Citic-Itochu partnership under this framework.
Bosideng controls about 40 percent of the Chinese market for down jackets last year, according to China Industrial Information Issuing Center.
The company holds pipelines in inland regions where consumers' purchasing power is rising, but it cuts its profit target for the year of 2015 earlier in April as it faces overstock problems last year. Its sales dropped 19.2 percent to 1.4 billion yuan year on year for the first two quarters of 2014.
Shuichi Koseki, Managing Executive Officer of Itochu and President of its textile company said in a statement that although Bosideng's business is facing fluctuation, Itochu is optimistic about Bosideng’s brand recognition and market influence.
With the deal, Itochu plans to stock Bosideng stores with apparel, shoes and bags from several US outdoor products brands for which it holds marketing licenses in a year. It will also consider co-developing new brands with Bosideng, Japan’s Nikkei Newspaper reported.
CITIC will offer support in stores’ financial solutions such as pay-by-card service and reward points earning scheme, the statement said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
