Belle share move will better reflect hidden value
The chairman of Hong Kong shoe retailer Mirabell International Holdings is set to pocket HK$1.65 billion in stock as part of the company's plan to distribute to its investors HK$3.3 billion worth of shares it holds in mainland competitor Belle International Holdings.
The company made the announcement yesterday as it released its results for the year to February, showing a 61 per cent jump in net profit to HK$105.5 million mainly due to the surge in value of its stake in Belle.
Earnings per share were 41 HK cents. Operating profit for the year rose 11.88 per cent to HK$60.97 million on sales that were up 7.85 per cent to HK$934.2 million.
Under the divestment proposal, Best Quality Investments, of which Mirabell owns 30 per cent, would distribute all its 1.25 billion Belle shares to its owners, Mirabell said in a statement filed with the stock exchange. The identities of the Best Quality owners were not disclosed.
Mirabell said it would receive 375 million of the shares, or a 4.4 per cent stake in the largest retailer of women's shoes on the mainland, and then allot 71 Belle shares for every 50 Mirabell shares outstanding, according to the statement.
