CVC leads investment in HK-listed Chinese shoe company

C.banner said CVC bought RMB138.6 million ($21.8 million) worth of convertible bonds and HK$294.5 million ($38 million) in exchangeable bonds. The private equity firm also invested through secondary shares.

Established in 1995, C.banner has become the second-largest player in China's mid-to-premium women's footwear market, with a 7.4% market share. The Hong Kong-listed company sells its products under five brands: C.banner, EBLAN, Sundance, Mio and Naturalizer.

"C.banner is a leading player in the fast growing ladies' footwear market in China with a strong and stable management team," said Francis Leung, chairman of Greater China and managing partner of CVC. "C.banner's flagship brand enjoys high brand awareness among Chinese consumers and is perceived to be elegant, sophisticated and high quality."

William Ho, a partner at CVC, added that over the past decade, C.banner has demonstrated increased its revenue and profitability organically through same-store-sales growth and new store openings.

CVC was advised by Freshfields Bruckhaus Deringer and Bank of America Merrill Lynch on this proprietary transaction.

Last month, Leung spoke at the AVCJ China Forum in Beijing, where he said that the current market had opened the doors for more PIPE deals in China. He added that the private equity firm plans to identify strong companies in the long-term, and disregard short-term fluctuations in valuation. It will enhance the corporate management of its portfolio companies and get them re-rated.

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• Topics
• PIPEs
• Greater China
• Consumer
• PIPE
• Consumer
• China
• CVC Capital Partners