27-06-2018, 08:19 PM
Li & Fung fashion unit sells North American business for US$1.4b to cut debt
The assets, which include children’s wear and accessories businesses, are valued at US$1.28b
Laurie Chen
PUBLISHED : Wednesday, 27 June, 2018, 6:44pm
UPDATED : Wednesday, 27 June, 2018, 6:53pm
Global Brands Group, the fashion firm spun off from supply chain giant Li & Fung, will sell a significant part of its North American licensing business to Nasdaq-listed Differential Brands Group for US$1.38 billion to cut debt.
Chief executive Bruce Rockowitz said the asset disposal was aimed to “keep their debt levels down” and lower their working capital. The company has a net debt of US$1.1 billion as of March 2018.
The assets to be sold, valued at a total of US$1.28 billion, comprise all of its North American children’s wear and accessories businesses, and a majority of its West Coast and Canadian fashion operations.
The company, which licenses brands such as Juicy Couture, Calvin Klein, and Under Armour, will pay a special dividend to shareholders of up to HK$356 million, or 32.5 HK cents per share.
More details in http://www.scmp.com/business/companies/a...b-cut-debt
Global Brands Group today closed at HK$0.30 (-0.02)
The assets, which include children’s wear and accessories businesses, are valued at US$1.28b
Laurie Chen
PUBLISHED : Wednesday, 27 June, 2018, 6:44pm
UPDATED : Wednesday, 27 June, 2018, 6:53pm
Global Brands Group, the fashion firm spun off from supply chain giant Li & Fung, will sell a significant part of its North American licensing business to Nasdaq-listed Differential Brands Group for US$1.38 billion to cut debt.
Chief executive Bruce Rockowitz said the asset disposal was aimed to “keep their debt levels down” and lower their working capital. The company has a net debt of US$1.1 billion as of March 2018.
The assets to be sold, valued at a total of US$1.28 billion, comprise all of its North American children’s wear and accessories businesses, and a majority of its West Coast and Canadian fashion operations.
The company, which licenses brands such as Juicy Couture, Calvin Klein, and Under Armour, will pay a special dividend to shareholders of up to HK$356 million, or 32.5 HK cents per share.
More details in http://www.scmp.com/business/companies/a...b-cut-debt
Global Brands Group today closed at HK$0.30 (-0.02)