China Moves 1 Yen To Acquire Phenix Company

Kappa, the international sporting apparel brand enterprise holding the ownership and management rights of mainland China and Macao, has recently announced that the company will purchase all the shares of Japanese sports clothing enterprise Phenix Co. and Ltd. at the price of 1 yen, which owns the ownership of Kappa brand in Japan, and owns the highest international ski and outdoor sporting goods brand "PHENIX" in Japan with the highest market share. "03818.HK"

China Kappa purchases Japanese Kappa

Phenix's main business is design, development and sales. It is one of the three global brand holders of Kappa and owns the ownership of Kappa brand in Japan.

China's trend indicates that through the acquisition, it will take the opportunity to enter the ski and outdoor sportswear market and expand its international influence.

The acquisition will be completed in April 30th of this year.

Phenix is a wholly owned subsidiary of ORIX Corporation, a Japanese based integrated financial services group in Tokyo.

As of February 28, 2007, the audited net assets of Phenix amounted to about 474 million yen (about HK $36 million 427 thousand and 100).

The trend of China will be to purchase the loan interest (including principal and interest) of ORIX, which is about 5 billion 937 million yen (about HK $457 million) at the price of 1 yen, and is expected to be completed in April 30th.

In addition, the trend of China and ORIX will subscribe for 499 million yen (about 3843.88 HK dollars) and 63 million yen (about HK $4 million 845 thousand and 200) to subscribe for 71 million 400 thousand and 9 million new shares issued by Phenix respectively. After completion, both sides will hold Phenix91% and 9% shares respectively.

China is the leading international sportswear brand enterprise in China, mainly engaged in the design, development, marketing and wholesale brand sportswear in China.

Since May 30, 2006, China has been the brand holder of Kappa in mainland China and Macao, and was officially listed on the stock exchange of Hongkong in October 10, 2007.

Purchase Phenix one stone two birds

Chen Yihong, chairman of China trend, said that the acquisition of Phenix is in line with China's long-term strategy of globalization and regional multi brands for the acquisition of Phenix in China.

Japan's high quality consumer goods market is renowned internationally, especially in the field of clothing, especially in the field of clothing. Phenix has more than 50 years of development history and strong research and development capabilities in Japan. Through this acquisition, China can introduce Phenix's experience and market touch design and development team to rapidly enhance the R & D level of China's trend.

He said: "Phenix brand has the largest market share in Japan's ski products market, and has great potential for development. The acquisition is also conducive to the development of China's ski and outdoor sportswear market.

In addition, the trend of China will become the brand holder of Kappa Japan after the acquisition, which will help the company expand its international layout, expand its scale effect and reduce its cost.

He said that the acquisition will have a synergistic effect on China's trend and Phenix's business in China and Japan, and will help promote China's multi brand management strategy.