Leverage The Capital Market, BELLE Shoe Industry Frequent M & A Cards

Since its listing in Hongkong in May this year, BELLE, the largest female shoe retailer in the mainland, has been developing its multi brand strategy with 1880.HK.

Following the announcement in August of the acquisition of FILA China Trademark and the acquisition of Miu Li brand in October, BELLE announced on Tuesday night that it has signed an agreement with Jiangsu's Group Co., Ltd. to invest 1 billion 600 million yuan to acquire the latter 5 wholly owned Affiliated Companies.

BELLE announcements show that the 5 companies that the company intends to acquire include: Jiangsu Sunda Shoes Co., Ltd., Zigui Yong Xu Shoes Co., Ltd., Jiangsu Sanda Group Three Gorges Shoes Co., Ltd., Shanghai Shanghai shoe industry Co., Ltd., Shanghai Wei Dun International Trade Co., Ltd.

According to the takeover agreement, Jiangsu San Da will inject capital into one of the 5 companies before pferring the land and property, and pfer some trademarks and intellectual property related to the other brands owned by sun Da, Bai Shi, Hao Ren Yuan and San Da group to the above pferee company.

The data show that Jiangsu forest Da group is one of the largest shoe retailer in China, and its brand is ranked fifth in the ranking of the ten big shoes sales in China (according to the data of the Chinese industry information publishing center).

On the other hand, BELLE's strength is even stronger, and its 4 largest brands have a market share of nearly 18% last year.

In May 23rd this year, BELLE listed in Hongkong, financing about HK $8 billion 660 million. Since then, the pace of its foreign acquisitions has been accelerating.

The Research Report of CICC believes that the M & a strategy can not only enhance BELLE's long-term growth potential, but also become a stimulating factor to drive the company's share price to go up continuously.

Yesterday, a brokerage industry researcher interviewed by reporters said that BELLE has two considerations in its continuous acquisition. First of all, the cash position of the company has been greatly increased after the listing. In the environment of RMB appreciation, converting the financing into real assets as soon as possible is an effective way to avoid the depreciation of the Hong Kong dollar compared with the renminbi.

BELLE also explicitly stated in the prospectus that it intends to use about 27% to 31% of listed financing as expansion plans, including acquisitions.

Secondly, according to the sales volume, BELLE is now the largest female shoe retailer in the mainland. The base of the company's redevelopment has been very large. It is difficult to achieve the profit forecast only by the internal growth of the enterprise.

In order to continuously enhance the enterprise's own value and maintain the company's profit growth, outward mergers and acquisitions are obviously a good choice for BELLE, a large cash holding company.

In addition, the researcher also pointed out that compared with FILA China Trademark and Mianli, the size and brand effect of BELLE International's acquisition target increased significantly, showing the firm's determination to develop multi brand strategy.

The acquisition date of BELLE after the listing, the date of purchase, the acquisition amount, the purchase amount, 8 month 16 days, the "FILA" trademark of China, 4800 million dollars, 10 month 28 days, the holding of Miaoshi (Millie 1, s) and other brands of OSS enterprises (Hongkong) and OSS International (Hongkong) 6 billion HK 11 month 13 days, Jiangsu's Sunda group's 5 companies and Sunda (Senda) and other brands of 16 billion yuan.