On the evening of July 15, domestic sports brand Anta Sports voluntarily announced its subsidiary Descent China Holdings Co., Ltd. (hereinafter referred to as “Descent China”) Information shows that ANTA Sports Group, Descente Global and Itochu have entered into certain agreements regarding the proposed reorganization of the ownership of Descente China and Chinese intellectual property rights.
According to the announcement, ANTA Sports Group and Descente Global and Itochu have entered into certain agreements in relation to the proposed reorganization of Descente China and the ownership of the Chinese intellectual property rights, including the injection of Chinese intellectual property rights by Descente into a newly formed entity (the “IP SPV”), which is wholly owned by Descente Global , and Descente Global injected 90% equity in the IP SPV into Descente China and increased Descente Global’s equity in Descente China. The transactions are subject to the fulfillment of certain conditions, including the injection of Chinese intellectual property rights into the IP SPV, and are expected to be completed by the end of 2020.
Anta Sports stated in the announcement that Disan Special China is a joint venture in which Anta Sports Group currently owns 60% of its shares, Descente Global, a wholly-owned subsidiary of Descente Ltd., owns 30% of the shares, and Itochu, a wholly-owned subsidiary of Itochu Corporation, owns 10% of the shares. Descente China controls entities that operate the Descente brand business in mainland China, Hong Kong and Macau.
Announcement display, as of December 31, 2019 In the fiscal year ending on that date, Descente China operates 136 retail stores in mainland China, with retail sales (including value-added tax) of nearly 1 billion yuan and achieving profitability. The board of directors of Descente China believes that the proposed transaction, including the injection of IP SPV and Chinese intellectual property rights into Descente China, will promote the acceleration and expansion of Descente brand business in China.
Anta Sports stated that the transactions are subject to the fulfillment of certain conditions, including the injection of Chinese intellectual property rights into the IP SPV, and are expected to be completed by the end of 2020 Finish.
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