Pou Chen bids to take its retail subsidiary priv - sportstextiles: Lea SportsTextiles

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Pou Chen bids to take its retail subsidiary private

24/01/2018
Taiwanese footwear manufacturing group Pou Chen has made an offer of nearly HK$11 million ($1.4 billion) to privatise Chinese sportswear distributor and retailer Pou Sheng, one of its subsidiary companies.

Sports shoe manufacturer Yue Yuen, also a subsidiary of Pou Chen, will sells its 62.41% stake in Pou Sheng for HK$6.8 billion ($870 million) as part of the proposal. Pou Chen owns 49.99% of Yue Yuen. 

If the proposal is completed, Pou Sheng would become a fully-owned unit of Pou Chen and would be delisted from the Hong Kong Stock Exchange. 

Explaining its decision to take Pou Sheng private, Pou Chen said the sporting goods industry “is experiencing unprecedented changes and challenges” due to the rise of online shopping, which has changed consumer expectations and increased competition.

It added Pou Sheng would require “significant investment” to transform its business and it believes taking the company private would give it more flexibility. 

Pou Chen has given no timetable for the acquisition, but has said the proposal still requires approval from the Investment Commission and the boards of Yue Yuen and Pou Sheng. 

Related stories:

Privatisation of Pou Sheng off after shareholder vote 13/04/2018
Sales growth for Pou Chen 20/12/2017
Strong first quarter for Pou Chen 13/04/2016
Pou Chen cancels employment policy following strikes 01/03/2016
Figures show Vietnam is becoming more important for Pou Chen 26/11/2015
Yue Yuen’s sales rise 5% in July 13/08/2015
Big-brand supplier reports another 10% rise 14/05/2015
Yue Yuen’s Vietnamese workers strike over pensions 02/04/2015
Yue Yuen appoints new directors following worker unrest 20/03/2015
Sales leap for Yue Yuen in February 11/03/2015
World’s biggest footwear manufacturer continues to grow 17/02/2015
Strong sales in November for Yue Yuen and Pou Sheng 15/12/2014

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