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

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Information Technology | On 25th Apr 2017

Self-repairing fabrics to be the future of fashion

It is the era of smart. Intelligent materials like self-repairing...

Textiles | On 25th Apr 2017

Indonesia revitalising textile sector

With exports of textile and textile products rising in Indonesia, the ...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ashok Desai
Bombay Textile Research Association

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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