Shanghai billionaire Guo Guangchang’s Fosun International investment company has bought a HK$232.million ($30 million) 5.14 per cent stake in Hong Kong-listed women’s apparel retailerKoradior Holdings.
Previously, Fosun International has invested in such fashion brands such as Caruso from Italy, Folli Follie from Greece and St John’s from the US.
In its latest move, a trust controlled by Koradior chairman Jin Ming sold existing shares to Fosun, lowering its stake to 59.9 per cent. Koradior, which has more than 200 retail stores in China, said it expects Fosun to try to tap into its marketing network, reports Forbes, which estimates Jin Ming’s fortune as of this month as being worth $431 million. Koradior runs stores trading under the Koradior, La Koradior and other brands.
In an announcement to shareholders, Jin Ming says the company considered Fosun’s stake as an important strategic investment.
“The directors believe that Fosun International will explore various possible in-depth co-operations in the fashion industry by taking advantage of its enormous investment network and strong capital capacity, as well as leveraging on the existing marketing network and operating platform of the company.
“The directors consider that the investment in the company by Fosun Ruizhe has reflected the optimistic outlook of Fosun International about the future development prospects of the fashion industry in China. It also symbolises Fosun International’s affirmation and recognition of the future development of the company.
“Fosun International has been persistently taking roots in China and investing in China’s
growth fundamentals. It has been actively implementing its investment model of “Combining
China’s Growth Momentum with Global Resources”.
Koradior operates stores trading under the Koradior, La Koradior and other brands. Koradior is controlled by a discretionary trust set up by Jin Ming and Fosun Ruizhe Grace Investments.