Pou Sheng (HKG:3813) to Buy Sportswear Retail Biz at $494M


Pou Sheng International (HKG:3813) has entered into an acquisition framework agreement for the acquisition of business and assets relating to sportswear retailing business in the PRC at a consideration of RMB400.8 million (HK$493.5 million).

Such business and assets include shop assets (including but not limited to inventories of Adidas (excluding Adidas Originals), Nike, Reebok, Puma, Converse and Umbro, furnishings and fittings), business contracts to which the selling company is a party and which will be renewed and proposed to be entered into by Pou Sheng, liabilities under the stored value cards, vouchers and membership cards issued by the selling company, accounts maintained with the banks and financial institutions for the operation of the target assets, records, designated personnel, prepayment of rent and taxes in connection with the operation of target assets after the transfer date by the selling company to the relevant contractual parties and the government authorities, and all the rights attached to the target assets.

As compensation for loss of business opportunity and the restrictive covenants given by the owners of the selling company under a business opportunity compensation deed, Pou Sheng has agreed to provide cash compensation of RMB230 million and issue and allot compensation shares (46 million new shares), representing 1.07% of the enlarged issued share capital of Pou Sheng, to the owners within 10 days of completion of the transfer agreements.


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