Chinese retailer Belle International has received a $6.8bn privatisation offer from a consortium led by Hillhouse Capital and CDH Investments in what is likely to be a record buyout for a consumer company listed in Hong Kong.
Hillhouse, CDH and two of Belle’s executive directors have offered HK$6.30 ($0.81) cash per Belle share, according to a filing to the Hong Kong Stock Exchange on Friday afternoon.
The offer represents a 19.5 per cent premium to the company’s last traded price of HK$5.27 on April 13, when it was halted pending an announcement related to the territory’s takeover and mergers code. The offer values the company at $6.8bn.
Belle, whose revenues are split between sales of footwear and sports apparel, operates more than 20,000 stores, mostly on the mainland. As the biggest women’s footwear retailer in China, it sells under brands such as Mirabell, Teenmix and Staccato and the Fato brand for men.
If successful, Hillhouse will hold 56.8 per cent of the company, CDH will hold 12.1 per cent and other participating management will hold 31.1 per cent.