crashtwinsanity2| Xtep International: Plans to acquire KPGlobal brand for US$151 million to eliminate the impact of losses

Newsletter summary

Special step International announcedCrashtwinsanity2Its controlling shareholder, the Ding family, plans to acquire KPGlobal in order to eliminate the loss of its "Galaxy" and "Paladin" brands. Transaction pricing 1Crashtwinsanity2With $.51 billion, Tebb plans to pay a special dividend of about $151 million to shareholders after the deal is completed.

Text of news flash

[special step International intends to sell the KP Global brand business for a purchase price of US $151 million] Special step International announced on the Hong Kong Stock Exchange on the evening of May 9 that the company will sell the KP Global brand business, which owns the "Galaxy" and "Paladin" brand businesses. It has been revealed that the Ding family, the controlling shareholder, put forward a takeover proposal aimed at eliminating the continuing impact of losses on the group's profitability and cash flow at a cost of $151 million. According to the announcement, the businesses of the "Galaxy" and "Paladin" brands have continued to record losses since 2019, with cumulative operating losses exceeding US $100m. Upon completion of the sale, the company plans to pay a special dividend of about $151 million to shareholders in return for their long-term support for the company. After the closing of the transaction on May 9, the company entered into a share purchase agreement with DingShunInvestment, under which the company conditionally agreed to sell the entire issued share capital of KP Global and DingShunInvestment conditionally agreed to carry out the acquisition. The sale and acquisition are in line with market demand and the company's strategic development, and will help Tebu International to further optimize the allocation of resources, concentrate on developing core business and enhance market competitiveness. At the same time, shareholders will also benefit from the special dividend to achieve a win-win situation between the company and shareholders. Tebu International has been committed to providing consumers with high-quality sports products, this strategic adjustment will help the company to better grasp market opportunities and achieve long-term and stable development. Investors can pay close attention to the follow-up developments of the company to make wise investment decisions.