Comprehensive M&A data with integrated detailed company information

Stake sold in Shenzhou International
Posted on Friday, 20 September 2019 11:35
Shareholders of Shenzhou International Group Holdings are paring their stakes by selling 31.70 million shares worth a combined HKD 3.23 billion (USD 412.90 million) to professional, institutional, corporate or other investors.

Chairman Ma Jianrong’s British Virgin Islands-incorporated Keep Glory is putting 27.98 million stocks of the high-end knitwear manufacturer on the block to trim its existing 46.6 per cent equity interest to 44.8 per cent.

Fairco Group, which is majority-owned by executive director Ma Renhe, with certain senior management holding a minority stake, is selling 3.72 million shares to cut its 5.3 per cent stake to 5.0 per cent.

The 2.1 per cent holding is priced at HKD 102.00 apiece, which represents a 1.9 per cent discount to today’s close of HKD 108.20 on 19th September, which gave a market capitalisation of HKD 157.09 billion.

Cayman Islands-incorporated, Hong Kong-listed Shenzhou International claims to be one of the largest vertically integrated clothing makers in China.

The company was also the knitwear garment manufacturer with one of the largest export volumes ranked among the country’s top such enterprises according to its 2018 annual report.

It focuses on producing sports and casual wear and lingerie for major international clients, including NIKE, UNIQLO, ADIDAS and PUMA, in product markets across Asia Pacific, Europe and the US.

Shenzhou International booked revenue of CNY 10.28 billion (USD 1.45 billion) in the six months ended 30th June, compared to CNY 9.16 billion in H1 2018.

Net profit attributable to shareholders totalled CNY 2.42 billion (H1 2018: CNY 2.18 billion).

The share sale is the third-largest minority stake deal targeting the global apparel manufacturing sector so far this year, according to Zephyr, the M&A database published by Bureau van Dijk.

© Zephus Ltd