Internet giant Tencent Holdings is leading moves to invest RMB10 billion (US$1.59 billion) in Chinese menswear group Heilan Home.
Along with JD.com and online clothing platform Vipshop Holdings, it is seeking a toehold of up to 10 per cent in the company for RMB5 billion, with the rest of the investment being pegged to set up an industrial investment fund to focus on deals that fit with Heilan’s business, Reuters reports.
Heilan’s market value is in the vicinity of $8.13 billion, and share trading has been suspended pending an outcome to the negotiations. With its portfolio including the HLA and Sancanal brands, Heilan is a long-time partner of Alibaba’s online marketplace Tmall.
None of the parties are commenting.
This latest move comes on the heels of Tencent saying it will invest RMB4.2 billion for a stake in Yonghui Superstores. It is also seeking to buy into the China business of French supermarket retailer Carrefour.
Tencent is a top-10 investor in JD.com, and together the two entities last month invested $863 million Vipshop.
Based in Jiangsu, Heilan was set up in 1997 by fashion magnate Zhou Jianping and has more than 5000 stores, mainly in China. According to its website, it had RMB12.5 billion in operating income in its first three quarters last year.
