BELLE Acquired Hongkong Local Shoe Maker Beautiful Treasure

Hong Kong listed footwear wholesalers and sportswear wholesalers Belle International Holdings Ltd (Hongkong exchange code: 1880, hereinafter referred to as BELLE) is about to complete the tender offer for another Hongkong Footwear Company, the beautiful International Holdings Limited (Hongkong exchange code: 1179, hereinafter referred to as "beautiful treasure").

BELLE is ready to withdraw from the beauty shoe industry after the completion of the acquisition, making it a wholly owned subsidiary of BELLE.

Prior to this, BELLE announced in February this year that it will make a comprehensive acquisition of beautiful treasure at a price of HK $6 per share, with a total investment of HK $1 billion 600 million.

This price is 15.16% higher than that of Mei Bao's closing price before the takeover announcement.

At 16 on May 9th, when the Hongkong stock exchange closed, BELLE and Mei Bao announced a joint announcement that shareholders holding the 94.46% stake in the company had accepted the offer made earlier by BELLE.

At the same time, all options holders who can subscribe for 16 million 420 thousand shares of the shares also express the acceptance of BELLE's proposal.

According to the laws of Hongkong, the final deadline for the tender offer is May 23rd.

BELLE announced that it would apply to the Hongkong stock exchange to cancel the application of Mei Bao after the completion of the acquisition.

BELLE, listed on the Hongkong stock exchange in May 2007, has become the largest privately owned retail enterprise in Hongkong.

Since its listing, BELLE has been active in mergers and acquisitions, and currently owns many well-known footwear brands such as Flia China, Mie Li, and sun da.

BELLE's performance in 2007 showed that the turnover of the company was 11 billion 670 million yuan, up 87% over the same period last year, and its net profit increased by 1 billion 979 million yuan, a double that of 2006.

Footwear business accounts for 90% of total revenue, and the company has 6000 branches.

BELLE's investor relations told the finance and economics reporter that the acquisition of "beautiful treasure" mainly focused on its own high-end brands, such as Joy & Peace, and also had the agency rights of American casual brand shoes.

This person said that in the past, the main market of beautiful treasure was in Hongkong, and its market share in the mainland was limited, but its brand had good prospects for development in the mainland, and the room for improvement was very large.

BELLE launched the leisure brand business line only this year.

After the acquisition of BELLE, BELLE hopes to open up its own and agent brand in the mainland with its own retail network and supply chain in the mainland.

"Since BELLE and BELLE are listed companies, it is very difficult to manage similar listed companies in the two main businesses after takeover."

According to the above sources, BELLE decided to withdraw from the beginning of the acquisition of the beautiful treasure, if it fails to achieve this goal, it will withdraw from the takeover.

Deng Weilin, the largest shareholder and chairman of the company, is the cousin of Deng Yao, chairman of BELLE's largest shareholder and listed company. The acquisition constitutes a related paction and has been approved by BELLE's independent shareholders.

UBS issued a report that the number of BELLE's branches in Greater China will grow to 6500 after the acquisition, and it is estimated that BELLE will have enough cash to make new acquisitions.

BELLE chief executive Sheng Bai Jiao said earlier that the group now focuses on women's shoes business, while beauty Bao represents many men's shoes brand, which can perfect the group's product structure through acquisition.