(Yicai Global) Sept. 14 -- Semir Garments, one of China's leading makers of clothing, plans to buy an 11 percent stake in the firm behind women's fashion brand Jason Wu, which counts former US First Lady Michelle Obama among its customers.
The Zhejiang-based company plans to buy more than 7.1 million shares in Jason Wu for about USD5 million -- or 70 US cents apiece -- it said in a statement yesterday. The deal will give it a seat on the target company's nine-member board.
Under the agreement, the companies will set up a joint venture which will hold exclusive business rights to Jason Wu brands in China, including Hong Kong and Macao, to produce, promote and sell all products apart from perfumes, the statement added.
The joint venture will also be named after Wu, a Taiwanese-Canadian artist and fashion designer, with Semir Garments pumping CNY45 million (USD6.6 million) in cash into the new company for a 75 percent stake. The Jason Wu company will inject CNY15 million in intangible assets for the remaining shares.
Editor: James Boynton