China Zhe Mu Is Likely To Be Bought By LVMH.

It is reported that L Capital Asia, a private Holdings Company of French luxury group LVMH, is seeking a five year installment loan of 130 million US dollars (about 832 million yuan RMB) for the purpose of acquiring 70% of China menswear company Ningbo zhe Mu Shang Limited (hereinafter referred to as "zhe Mu Shang").

If the paction is successfully completed, Ningbo zhe Mu Shang management team will retain 30% of the company's remaining shares.

The reporter tried to get the head of the planning department of zhe Mu Shang through the public relations contact, but the reply was "never heard of it".

According to incomplete media statistics, in the 1987-2014 years, LVMH group has made 62 acquisitions, holding at least 74 companies.

Among them, the largest acquisition of the group in 14 years took place in jewelry category. In 2011, LVMH group bought Bvlgari at a high price of 6 billion US dollars.

Not long ago, LVMH group also announced the purchase of a minority stake in Italy jewelry brand Repossi.

However

Its L Capital Asia is mainly in China, India and the Middle East countries. The industry is mainly focused on fashion consumer goods, high-end retailers, lifestyle catering, tourism and vacation. The target is a relatively high growth and relatively small company, in order to achieve a higher investment return rate in the late stage.

According to the official website of L Capital Asia, the fund usually seeks more than $100 million in revenue.

It's not a clear objection to the search

But L Capital Asia is still inclined to cooperate with unlisted companies through 3 to 5 years of investment.

L Capital Asia has invested 24 companies worldwide, including 4 in mainland China and 3 in Hongkong.

But in fact, these companies with "LVMH" on the surface are not really among the luxury goods.

And L Capital Asia as an investor, its main responsibility is only to provide financial support and strategic analysis.

Ningbo zhe Mu sang Co., Ltd. was founded in 2011. Its three men's clothing brands are respectively

Urban youth brand gxg.jeans and children's wear gxg.kids.

In addition to the distribution of more than 1000 stores and online stores in China, the three brands also have special stores on Tmall. In 2015, "double 11" has just passed, and GXG ranks fourth among the fastest selling companies in sales, only after Meizu, Xiaomi and Taiping.

Prior to this, zhe Mu and Shang had had an acquisition deal with Semir, but the price difference led to the two finally failed to reach a deal.

At that time, Semir was expected to buy a 71% stake in zhe mu with a paction price of 1 billion 980 million -22.6 billion yuan.

However, since the two sides announced that the brand will cooperate, the market reaction is not optimistic, and Semir's share price has continued to decline.

Semir had a premium of 10 times to make acquisitions, but zhe Mu still valued itself at around 3 billion yuan, much higher than the purchase price.