] China’s V-Grass Fashion has shelled out 5.13 billion yuan (US$741.6 million) for its acquisition of Teenie Weenie, a youth clothing brand owned by South Korean retailer E-Land, The Bell reported on March 13.
The payments were made over three weeks since the deal was signed on Feb. 20.
The deal is the largest-ever purchase of a Korean fashion brand by a foreign buyer.
Under the deal, V-Grass will acquire a 90 percent stake in a new entity planned to be set up in China, while the remaining 10 percent will be owned by E-Land International Fashion in Shanghai, a subsidiary of E-Land Fashion China Holdings, for the next three years.
E-Land will make about 750 billion won (US$644 million) from the transaction, using the money to lower its debt-equity ratio to 240 percent in the first quarter.
V-Grass plans to list Teenie Weenie on the Shanghai Stock Exchange in the coming months.
Teenie Weenie entered the Chinese market in 2010, with a total of 1,200 stores being operated across the nation. Their combined annual revenue was about 400 billion won in 2016.
By Park Yuna (firstname.lastname@example.org