Home / Knowledge / News / Apparel/Garments / Luen Thai Holdings acquires Ocean Sky's apparel business
Luen Thai Holdings acquires Ocean Sky's apparel business
Jan '13
Mainboard listed Ocean Sky International Limited (“Ocean Sky”, or together with its subsidiaries, the “Group”) has entered into a conditional sale and purchase agreement (the “Agreement”) today with Luen Thai Holdings Limited (“LTHL”) and its wholly owned subsidiary, Sunny Force Limited (the “Purchaser”), for the Purchaser to acquire all of the issued share capital, together with all rights, dividends, benefits and entitlements attaching thereto, of Ocean Sky’s wholly owned subsidiary, Ocean Sky Global (S) Pte. Ltd. (“OSG”) for an aggregate cash consideration of US$55 million, subject to the terms and conditions of the Agreement (the “Proposed Disposal”).

Special Dividend

Ocean Sky intends to, subject to prevailing market conditions, pay a tax-exempt special dividend of S$0.016 per ordinary share in the capital of Ocean Sky, amounting to approximately US$5.8 million in aggregate upon the completion of the proposed disposal (the “Completion”).

Purchase Consideration

The purchase consideration of US$55 million represents  a premium of approximately 37.5% to OSG’s net tangible assets of US$40 million (post-restructuring) and a price to earnings ratio of approximately 6.3 times to OSG’s net profit after tax and minority interests of US$9.1 million as at 31 December 2011. 


As announced on 10 August 2012 and earlier today, pursuant to an internal restructuring exercise (the “Reorganisation”), Ocean Sky will transfer its business of designing, manufacturing, sales and marketing of apparel (“Apparel Operations”) to OSG.  The Proposed Disposal represents an excellent opportunity for the Group to unlock the value and realize its investment in the Apparel Operations at a satisfactory price.

It will allow Ocean Sky to re-strategise and re-deploy its financial and capital resources to expand into other businesses or undertake new investment opportunities that may arise in the future. Ocean Sky intends to use the disposal proceeds for future business and investment opportunities and is considering its options in relation to other business ventures. 

Commenting on the Proposed Disposal, Ocean Sky’s Executive Chairman and CEO, Mr Edward Ang said: “By unlocking the value of our apparel operations business at a good price, we now have the resources to expand and invest in new opportunities, which could potentially generate higher returns to our shareholders on a more sustained basis.” 

About LTHL

Incorporated in the British Virgin Islands, the Purchaser is a wholly owned subsidiary of LTHL, which is incorporated in the Cayman Islands and is listed on the main board of the Stock Exchange of Hong Kong Limited. LTHL, together with its subsidiaries, is one of the leading apparel manufacturing and supply chain services providers worldwide and is engaged in the manufacture, trading, and retail of garments, textile products and accessories and the provision of freight forwarding and logistics services with operations in the United States, Indonesia, Philippines, and the People’s Republic of China. 

Must ReadView All

Textiles | On 21st Feb 2017

Net profit at Indorama Ventures zooms 145% in 2016

Net profit at Thailand headquartered and Aloke Lohia led Indorama...

Information Technology | On 21st Feb 2017

ThreadSol launches IntelloBuy & IntelloCut in Vietnam

ThreadSol, the pioneer of enterprise material management for sewn...

Textiles | On 21st Feb 2017

GST to reduce documentation for logistics firms: CBRE

The Goods and Services Tax (GST) is likely to result in a reduction...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search