RMB 550 Million (US$81 Million) Strategic Investment by TPG Capital in
Daphne International
HONG KONG, May 25 /PRNewswire-Asia-AsiaNet/ --
Daphne International Holdings Limited (HKSE: 210, "Daphne" or "the
Company"), the owner of the "Daphne" and "Shoebox" brands and a leading
retailer of ladies' footwear in the PRC, announced today that the Company
has entered into an agreement with TPG Capital ("TPG"), under which TPG
will make a strategic investment in Daphne through the subscription of
RMB 550 million convertible bonds with warrants.
Mr. Chen Ying-Chieh, Chairman of Daphne said, "We are delighted to
have TPG as our strategic partner. We believe that TPG shares the same
strategic vision of our Company and expect this partnership to not only
help us in further solidifying our leadership position in the domestic
market in China but also contribute to transforming Daphne to become a
world-class company."
Mr. Chen Hsien Min, Managing Director of Daphne added, "We view this
as a long-term partnership and intend to work closely with TPG to further
strengthen our financial management, operational efficiency and corporate
governance. We will also fully leverage TPG's global network to explore
new opportunities and enhance Daphne's overall competitive position in
the marketplace."
Under the agreement, TPG has agreed to subscribe for unsecured
convertible bonds due 2014 in the aggregate principal amount of RMB 550
million. The bonds carry an annual coupon of 3.125% payable semi-
annually, and will be convertible, subject to certain conditions, into
Daphne's new ordinary shares at an initial conversion price of HK$3.50
per ordinary share. The bonds will be redeemed at par if not converted.
In addition, TPG will receive 100 million warrants with the right to
subscribe for one ordinary share each, with an initial exercise price of
HK$4.00 per warrant. The warrants have a maturity of five years. If
exercised in full, TPG will receive 100 million new ordinary shares in
Daphne.
TPG will hold 278,510,572 ordinary shares, equivalent to
approximately 14.5% of the total enlarged issued share capital of Daphne,
assuming the bonds are fully converted and the warrants are fully
exercised.
Upon closing, the Company will receive the US-dollar equivalent of
RMB 550 million (or approximately US$81 million) of gross proceeds from
the issuance of the convertible bonds with warrants which will be used
for further expansion of its "Daphne" and "Shoebox" store network in the
PRC. In addition, the Company expects to raise a further HK$400 million
(or approximately US$52 million) upon the full exercise of the warrants,
which will be used for general working capital purposes.
Ms. Mary Ma, Managing Director of TPG said, "We are confident in the
long-term growth prospects of the consumer retail sector in China. We
believe that Daphne, with its widely recognized 'Daphne' and 'Shoebox'
brands, has every ingredient needed to grow from strength-to-strength and
to accomplish even greater success in the future."
Mr. Stephen Peel, Managing Partner, Greater China, Eurasia, India and
SE Asia of TPG added, "This investment is consistent with TPG's
philosophy of supporting high-growth Chinese consumer-oriented companies
to achieve world-class operating standards. We believe our capital and
operational expertise will contribute to a successful partnership with
Daphne."
Merrill Lynch (Asia Pacific) Limited acted as the sole financial
advisor to Daphne and Nomura International (Hong Kong) Limited acted as
the sole financial advisor to TPG on this transaction.
This announcement is not an offer of securities for sale in the
United States. Securities may not be offered or sold in the United
States absent registration or an exemption from registration. Any public
offering of securities to be made in the United States will be made by
means of an information memorandum that may be obtained from the Company
and will contain detailed information about the Company and management,
as well as financial statements. The Company does not intend to register
any part of the offering in the United States.
About Daphne International Holdings Limited
Established in 1987, Daphne International Holdings Limited (formerly
known as Prime Success International Group Limited) was listed on the
Main Board of The Stock Exchange of Hong Kong Limited in 1995 and has
been admitted as one of the constituent stocks of the Hang Seng Composite
Mainland Index, effective on 11 September 2006. The Group is principally
engaged in the manufacturing, marketing and distribution of footwear,
apparel and accessories products under its own and licensed brands and on
an OEM basis. Its major markets include China and the US. In 1990, the
Group launched its footwear business in China under the brand name
"Daphne" which is now a leading ladies' footwear brand in China.
Currently the Group operates over 3,000 outlets, comprising "Daphne",
"Shoebox", "adidas", "Nike", "Arezzo", "Sofft" and "Born" brands, in
Mainland China and Taiwan.
About TPG Capital
TPG Capital is the global buyout group of TPG, a leading private
investment firm founded in 1992 with approximately US$45 billion of
assets under management and offices in San Francisco, London, Hong Kong,
New York, Fort Worth, Menlo Park, Washington, D.C., Melbourne, Moscow,
Mumbai, Paris, Luxembourg, Beijing, Shanghai, Singapore and Tokyo. TPG
Capital has extensive experience with global public and private
investments executed through leveraged buyouts, recapitalizations,
spinouts, joint ventures and restructurings. Please visit
For media enquiries:
Daphne International Holdings Limited
Strategic Financial Relations Limited
Esther Chan
Tel: +852-2864-4825
Email: esther.chan@sprg.com.hk
Doris Chan
Tel: +852-2114-4950
Email: doris.chan@sprg.com.hk
Fax: +852-2804-2789 / +852-2527-1196
TPG Capital
Owen Blicksilver Public Relations
Carol Makovich
Tel: +1-203-622-4781
Email: carol@blicksilverpr.com
Ogilvy Public Relations Worldwide
Scott Kronick
Tel: +86-1370-100-4595
Email: scott.kronick@ogilvy.com
SOURCE Daphne International Holdings Limited
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