(Yicai Global) April 18 -- Chinese fashion sportswear firm Xtep International Holdings aims to ink a deal with Korean conglomerate E-Land Group to buy US sports-shoe brand K-Swiss, according to industry news site WebTex.
The deal will cost around KRW300 billion (USD270 million) and a preliminary agreement is likely to be concluded before the end of this month, the online outlet reported Korean media sources as saying.
Fujian-based Xtep is yet to respond to the report.
Xtep finished a new share placement earlier this month, raising around HKD1.4 billion (USD178.5 million) without saying how it plans to use the funds. The firm's board of directors is exploring and evaluating several opportunities for acquisitions but no agreements have been signed, according to a statement on April 10.
The company did stress that it aims to "expand from a single-brand firm to a multiple-brand group."
K-Swiss is a sports-shoemaker based in California and is known for making the world's first pair of all-leather tennis shoes. It now focuses on sports fields such as running, body-building, triathlon and tennis and casual wear.
E-Land Group bought the brand for USD170 million in January 2013. The group has sold off assets amid a rising debt ratio in recent years, and K-Swiss is on the list of cuts. The group started looking for a buyer in 2017, and a rumor emerged in January that a Chinese suitor may be in talks about a deal.
Editor: William Clegg