Imagi agrees $36 million acquisition
Hong Kong-listed animation company Imagi International has agreed to pay $36.4 million for a substantial minority stake in Sino Light Enterprise, a clothing company that licenses Imagi’s Pleasant Goat and Big Big Wolf (喜羊羊與灰太狼) brand.
SLE, which currently manufactures and distributes children’s wear, aims to open 1,100 Pleasant Goat and Big Big Wolf retail outlets over the next three years in mainland China. These involve a mixture of flagship stores, shops-in-shops and department store corners.
“The establishment of the nationwide retail network would enhance direct interactions of the brand with consumers. By leveraging on the popular Pleasant Goat and Big Big Wolf characters, we believe the group’s consumer products licensing business will benefit from the fast-growing animated entertainment business and children’s wear market in mainland China,” said Soh Szu Wei, CEO of Imagi in a statement.
Of the $36.4 million acquisition price, some $9.1 million is payable in cash, with the $27.3 million balance coming in the form of business support services (human resources, legal support, marketing and IT) provided by Imagi subsidiary Toon Express to SLE. The deal gives Imagi 20.6% of SLE, but the company also has a right to subscribe for further shares that would lift its holding to 29.6%.
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