The Birth Of Super Shoe Family: BELLE'S Acquisition Of Beautiful Treasure

Recently, BELLE International (1880.HK) and 1179.HK announced the final takeover plan.

BELLE international has bought the beautiful treasure at the price of HK $6 per share, with the total value of 262 million 300 thousand shares of all the issued shares of the beautiful treasure, and the value of the beautiful treasure is about 1 billion 574 million Hong Kong dollars.

The purchase price of HK $6 per share is 15.16% higher than the closing price of HK $5.21 before the announcement of the announcement.

After the acquisition, BELLE will become a wholly owned Affiliated Companies of BELLE international. By then, it will be delisted from the stock exchange of Hong Kong.

Both BELLE international and Mei Bao belong to the Deng family, and the steward of both sides is cousins.

After completing a series of acquisitions, the shoe king Deng Yao wants to do the integration of internal resources.

As a result, Deng's family will have the opportunity to become an international shoe giant from the small workshop of the Pearl River Delta 30 years ago.

BELLE anti takeover

"BELLE international is actually stepping up on the shoulders of beautiful treasure."

A BELLE group insider said.

In the early 70s of last century, several brothers of Deng family began to build shoes factories.

Deng Weilin and Deng Qianglin set up a beautiful treasure in Hongkong, and their cousin Deng Yao registered BELLE shoe industry.

The latter brothers jointly established Deng's enterprise joint stock company. Among them, Deng Yao, Deng Weilin and Deng Qianglin accounted for 25% of the company's shares respectively.

Mei Bao became the controlling shareholder of Deng's company.

In 1996, Deng Yao was listed as the vice president of the company in Hongkong.

At that time, the Mirabell flagship brand was quite well-known in the Hongkong and Macao market. It also owned the United States Caterpillar, Merrell, Royal Elastics and Sebago footwear products, Italy Geox footwear products, British Gola shoes, bags and clothing products in Hongkong and Macao.

At that time, BELLE international was only a partner and a foundry manufacturer of beautiful treasure. It belonged to BELLE international Staccato (Staccato) and Joy (Peace), which were sold by beautiful treasure.

However, the reform and opening up of the mainland has accelerated the growth of BELLE international.

After becoming bigger, BELLE began to control the beautiful treasure step by step.

In 1999, the company still controlled BELLE international Best Quality, when Best Quality held all BELLE shares.

Mei Bao, Deng Yao and Sheng Bai pepper hold direct or indirect shares of Best Quality30%, 27% and 6% respectively, while the remaining 37% shares are scattered among other shareholders.

In 2003, BELLE bought Teenmix, an important brand Teenmix from beautiful treasure, and has obtained the general agent right of the international sports brands such as Nike and Adidas in mainland China.

BELLE began to complete the important pformation from production to sales channel control.

Listing financing has also entered the important agenda of BELLE footwear development plan.

In December 2004, Deng Yao quit Mei Bao and pferred the shares of Deng's company shares to other three shareholders.

In 2005, BELLE international introduced strategic investors BELLE financial company through the issuance of new shares, and BELLE's finance was directly controlled by Deng Yao.

Best Quality's share of BELLE international has been diluted to 17.6%.

Deng Yao has directly held 11.6% of BELLE's international equity through BELLE's finance, while management has 70.8%.

After the listing of BELLE international in Hongkong stock exchange in May 2007, the shareholding of Mei Po in BELLE international was further diluted to 5.3%.

At this time, Deng Weilin, the major shareholder and chairman of the 165 million shares holding the beautiful treasure and 62.87% of the total share capital, has promised to accept BELLE International's acquisition of beautiful treasure. In this paction, Deng Weilin can cash HK $989 million 600 thousand.

Expanding machine integration

For the acquisition, BELLE international pointed out in the announcement that the company's own development strategy is to focus on the development of high-end leisure shoes business.

BELLE's brand sells and distributes shoes at a price of $60 to $300, which is believed to be highly potential in the mainland and will complement the company's business.

The acquisition has more than 500 distribution points of the beautiful treasure, BELLE will achieve middle, high, low grade women's shoes, and men's shoes and sports shoes different footwear products combination, while attacking mainland China and Hong Kong and Macao market.

In addition, because BELLE's overseas business, especially Hongkong's business, is managed by experienced personnel, BELLE believes that the implementation of the acquisition will benefit and enhance the company's overseas business operations.

"After merging BELLE and Mei Po, we can combine two companies' resources in mainland China, Hong Kong and Macao, and overseas markets, and operate different grades of brands and different types of footwear products. For upstream suppliers, we need to enhance channel control and maximize market share and squeeze competitors out of the downstream market."

BELLE group insiders believe.

In the early days, its brands such as Mirabell, Fiorucci, Inshoesnet and Geox had been sticking to the Hong Kong and Macao markets. BELLE's brands such as Belle, Teenmix, Tata, Fato and so on basically only attacked the mainland market.

But in recent years.

There are more and more products coming into joint between two enterprises.

In fact, in China's major shopping malls, only the brand of the two companies of Mei Bao and BELLE has basically occupied the half of the shoe cabinet.

At present, in China, the sales volume and operating profit of Mei Bao have increased rapidly, its turnover has increased by 19.56% compared with the same period last year, while its operating profit has increased by 61.82%.

But in the Hongkong market with international brands, fierce competition has brought great pressure. In 2007, its wholesale business turnover increased by 0.84% over the same period last year, but its operating profit decreased by 17.35%.

Prior to its listing in 2007, BELLE international has completed three major acquisitions.

They bought Aoshi enterprises with HK $600 million, and 1 billion 500 million bought men's shoes giant Sunda, and 563 million yuan bought Shanghai Yong Xu.