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THE INVESTOR

Deals

China’s V-Grass seals Teenie Weenie deal

  • PUBLISHED :March 14, 2017 - 15:31
  • UPDATED :March 14, 2017 - 15:31
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[THE INVESTOR] 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 (yunapark@heraldcorp.com)
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