Leading Capital backs take-private for China’s Mecox Lane
China health, beauty and lifestyle products retailer Mecox Lane has received a take-private offer from majority shareholder Cnshangquan in conjunction with private equity firm Leading Capital. It values the business at approximately $52 million.
The consortium members, who between them own 63.8% of Mecox, are willing to pay $4.00 per share for all outstanding American Depository Shares (ADS), according to a regulatory filing. It represents a 27% premium to the company's July 20 close of $3.14. The stock ended July 22 at $3.21.
The transaction will be financed through cash and rollover equity from consortium members, plus contributions from any additional equity investors that subsequently become involved.
Mecox was founded in 1997 and listed on NASDAQ in 2010. It previously received backing from Warburg Pincus, iVentures, CDIB Capital and Sequoia Capital. Formerly an online clothing retailer, Mecox now focuses on the fashion and lifestyle segments through multiple retail channels.
Cnshangquan took a majority stake in the business last year for around $39 million, paving an exit for investors including Sequoia, Sina Corp and China Dongxiang Corp. Cnshuangquan is a wholly-owned subsidiary of Chinese services sector conglomerate Sanpower Group.
Mecox posted revenues of $49.6 million in 2014, up from $42.6 million the previous year. The company's net loss narrowed to $16.4 million from $26.6 million in 2013.
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