Ruyi Group Will Buy The British Windbreaker Brand

Chinese enterprises continue to expand the pace of overseas mergers and acquisitions, according to the world clothing shoes and hats net, China.

Shandong Ruyi group plans to buy British windbreaker brand from Hongkong's YGM trade (00375.HK), which is about $120 million.

Aquascutum, the due diligence is under way.

One of those who asked for anonymity because of undisclosed information said Ruyi hopes to reach a final agreement in the next few weeks.

In April of this year, Ruyi group bought 1 billion 300 million euros for France.

Brand Sandro, Maje and Claudie Pierlot parent company's SMCP group's control.

In October 17th, YGM trade announced on the exchange that it had entered into a memorandum of understanding with two independent third parties, and planned to sell the manufacturing and marketing business and related intellectual property rights of the brand products of the company. The amount involved was about 120 million US dollars or HK $930 million, and the selling price was up or down by no more than 5 million US dollars, but it did not explain the identity of the buyer.

However, the aforementioned insider said it was not 100% able to reach a deal.

As of press release, YGM trade and Shandong Ruyi group declined to comment.

YGM trade said earlier that it had charged $5 million to the buyer as an exclusive refundable deposit, which is expected to be completed by March 31st next year.

In 2012, YGM traded 15 million pounds (about HK $188 million) to acquire the business and assets of the company and become the global controller of the brand.

YGM trade mainly deals in retail and wholesale brand clothing, leather goods and accessories. It has MICHELRENE, Guy, Laroche and Charles Jourdan, American brand Ashworth, and Swedish brand J.Lindeberg.

As a twin brother, Burberry is also a traditional luxury brand in the UK. It also makes windbreaker so well, but its performance has been in trouble in recent years.

Affected by the weakening of the fashion retail market in the Greater China region, the YGM trade (00375.HK) of the company was recorded at 341 million yuan in the first half of the fiscal year ending September, down 21% year on year, 191 million yuan gross profit, 25.8% down, and the loss increased from 65 million 360 thousand yuan a year earlier to 65 million 360 thousand yuan. In order to increase the cash flow to make up for the loss, YGM trade sold 66 million 800 thousand property in August this year.

In the first half of this fiscal year, the group's total sales of garments fell by 22.9% to HK $286 million 618 thousand, with a loss of HK $73 million 435 thousand.

Yghs is the most important clothing business in YGM trade. Its loss in garment business expanded further than last year, and sales in the Greater China region dropped by 22.1%.

It is noteworthy that the income of British clothing retail and wholesale business in Asia is 15.8% in the pound.

By the end of September, YGM trade closed 21 sales outlets in half a year.

YGM trade has said that the retail market of business operations has shrunk, especially in the Hongkong and Mainland China markets, leading to a marked decline in retail sales and wholesale sales of clothing, leather goods and clothing, and in addition, shops rents and other occupancy expenses are still highly profitable.

YGM shares (00375.HK) have risen 46% this year as a result of the news of the sale of its brand name, "yes".

On the second day of the announcement of the sale of the brand, the company's stock surged 74%, and its market value is currently about 156 million US dollars, or 1 billion 200 million Hong Kong dollars.

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