This means that Hillhouse will spend a total of approximately HK$1 billion (approximately RMB 824 million) on Xtep and its subsidiaries this time. At the same time, Hillhouse holds 20% of the shares of Xtep Global and has appointed directors.
This time, Hillhouse took action against Xtep.
On June 15, Xtep International Holdings Co., Ltd. announced:
Hillhouse Group and the owners of “K-Swiss” and “Paladin” (“Two major brands”), Xtep Global Investment Co., Ltd. (“Xtep Global”) has established a strategic partnership, whereby Hillhouse will invest US$65 million (approximately HK$505.7 million) in Jointly develop the global business of the Group’s “K-Swiss” and “Paladin” brands.
In addition, Hillhouse also entered into another subscription agreement for the convertible bonds issued by the company, with a total investment principal of HK$500 million.
This means that for Xtep and its subsidiaries, Hillhouse will spend a total of approximately 1 billion Hong Kong dollars (approximately 824 million yuan) this time.
As soon as this news came out, Xtep’s stock price rose sharply. It once rose by more than 30% to HK$11.58, a record high.
As of press time, Xtep’s market value reached HK$26.429 billion. Some netizens said, “I can only say it is an ‘extraordinary feeling!'”
Xtep Group regards Hillhouse as a strategic investor.
The Group believes that the introduction of Hillhouse will enhance the competitiveness and profitability of the two major brands. The Group looks forward to fully unleashing the potential of the two major brands in China’s rapidly growing sportswear market.
Ding Shuibo, Chairman and CEO of Xtep International, said:
“This strategic partnership between Hillhouse Group and Xtep Global and investment in the company will provide the group with more resources and experience to develop global business, while optimizing our investor and capital base.”
In the first five months of this year, Xtep’s main brand sales grew strongly, up 55%. Both online and offline sales recorded strong growth. The retail discount rate remained at 30% to 25% off, and terminal inventory continued to improve to 4.5 months. It is expected that this year, retail discount rates and inventory turnover cycles will return to pre-epidemic levels.
Hillhouse holds 20% of the shares of Xtep Global and has appointed directors
Xtep said:
“Hillhouse Group will occupy 20% of the shares of Xtep Global and appoint directors. This is what we are most interested in. , which means that Hillhouse Group will jointly develop two brands with us.”
Hillhouse Group stated that in 2019, Xtep International completed the acquisition of K-SWISS and Palladium (Palladium) two brand global business acquisitions, and formed the current “fashion sports” segmented sports group in the brand matrix. The management of Xtep International has excellent leadership and strategic vision. Since its establishment in 1987, Xtep International, under the leadership of its founder Ding Shuibo, has grown from a start-up private enterprise to a Hong Kong-listed company with a market value of more than 20 billion, showing a good development trend and an aggressive fighting spirit.
Xtep International was listed on the Main Board of the Hong Kong Stock Exchange in June 2008. It is mainly engaged in the design, research and development, manufacturing, and sales of sporting goods (including shoes, clothing and accessories). Marketing and brand management.
Since its establishment in 2001, Xtep International’s main brand “Xtep” has more than 6,000 retail stores. In 2019, Xtep International further enriched its brand portfolio, and its brands now include K-Swiss, Paladin, Saucony and Myler. </p
