A consortium led by Chinese private-equity firms on Friday offered to take Hong Kong-listed shoe retailer Belle International (1880.HK) private for $5.82 billion, in what would be one of Asia's largest delistings.
Hillhouse Capital Group, CDH Investments and Belle's management proposed to buy the company for HK$6.30 per share in cash, which represents a 19.5% premium to the stock's last trading price. The deal values Belle at $6.8 billion.
The consortium pledged to revive Belle's declining retail sales and change its business model by introducing technology and infrastructure, as traditional retailers face increasing challenges from e-commerce and internet-based businesses, according to Belle's statement.
Shenzhen-based Belle is China's largest retailer of women's footwear, with around 20,000 outlets. In March, the company said it expected its net profit for the financial year ended at the end of February to fall 15% from a year earlier.
The take-private proposal is pending approval from Belle's shareholders, the company said. Upon completion, Hillhouse will hold 56.81% of the company, while CDH will hold 12.06%. The remaining shares will be held by Belle's management, it said.
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(END) Dow Jones Newswires
April 28, 2017 06:54 ET (10:54 GMT)