Home / Knowledge / News / Apparel/Garments / Luen Thai Holdings acquires Ocean Sky's apparel business
Luen Thai Holdings acquires Ocean Sky's apparel business
09
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. 

Rationale

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

AEPC concern over apparel exports fall; envoys meet CEA

Apparel/Garments | On 17th Nov 2017

AEPC concern over apparel exports fall; envoys meet CEA

India’s Apparel Export Promotion Council (AEPC) has expressed concern ...

Moody's improves India's rating

Textiles | On 17th Nov 2017

Moody's improves India's rating

Moody's Investors Service has upgraded the Indian Government’s local...

Sweden in talks with Birlas for smart textiles project

Textiles | On 17th Nov 2017

Sweden in talks with Birlas for smart textiles project

Sweden is seeking a collaborative project with the Aditya Birla Group ...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search