Shenzhen Capital to exit e-commerce site via trade sale
Shenzhen Capital Group will exit Shenzhen Globalegrow E-commerce as the online platform use to sell Chinese products overseas is acquired by Shanxi Baiyuan Trousers Chain Management.
According to a regulatory filing, Shenzhen-listed apparel maker Baiyuan Trousers will acquire Globalegrow for RMB1.03 billion ($166 million) via cash payment and stocks swap with existing shareholders.
As part of the deal, Baiyuan Trousers will issue RMB192 million new shares in exchange for a 21.7% stake in Globalegrow owned by Shenzhen Capital Group and its affiliate, Hotland Venture Fund. AVCJ Research's records show Shenzhen Capital invested $7.74 million in Globalegrow in 2011.
Upon completion of the transaction, Shenzhen Capital and Hotland Venture Fund will hold a 5% stake in the listed company. The VC firm will be subject to a 12-month lock-up period.
Founded in 1998, Baiyuan Trousers designs and outsources production of formal and casual pants under its own brand. It operates more than 1,600 retailing stores in China.
Globalegrow launched in 2007, selling consumer products including watches, clothes and toys to over 200 countries.
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