New | Hong Kong fashion manufacturer Ports Design sells stake in fashion and apparel business
Hong Kong fashion and luxury goods company Ports Design on Monday said it has agreed to sell a 20 per cent stake in its indirectly owned subsidiary to a mainland-China based fund management firm for 600 million yuan.
It signed a framework agreement on May 31 to sell a 20 per cent stake in Ports Hong Kong that holds substantially all of Ports Design’s existing fashion and apparel business.
The framework deal also included that Oriental Fortune will introduce to the company a third party purchaser to make an offer to buy the remaining 80 per cent interest in Ports Hong Kong for 2.4 billion yuan within 90 days after completion of the sale of the 20 per cent interest in Ports Hong Kong.
The net profits of Ports Hong Kong after taxation and extraordinary items for the financial year ended December 31 2014 were about 274 million yuan.
The net asset value of Ports Hong Kong by the end of last year was about 2.08 billion yuan. After the payment of the cash dividend in the amount of 1.5 billion yuan and the deduction of minority interest, the net asset value of Ports Hong Kong will be about 557 million yuan.
Ports Design offers its products under the Ports International, Ports 1961, BMW Lifestyle, Armani Collezioni, Armani Jeans, and Versace brands. As at December 31, 2014, Ports Design operated 310 retail stores.
