Pou Chen Corporation Announces Proposal to Privatize Subsidiary Pou Sheng International (Holdings) Limited

January 21, 2018

On January 21, S&C client Pou Chen Corporation (PCC), a Taiwan-listed company, announced a proposal to privatize its indirect non-wholly owned subsidiary Pou Sheng International (Holdings) Limited, a Hong Kong-listed company, by way of a scheme of arrangement under Bermudan law. Under the proposal, all shareholders of Pou Sheng would be entitled to a cash consideration of HK$2.03 ($0.26) per Pou Sheng share, valuing the transaction at $1.39 billion.

PCC is the largest branded athletic and casual footwear manufacturer in the world and a major supplier for Nike, adidas, Reebok, Asics, Under Armour, New Balance, Puma, Converse, Salomon and Timberland, among others. Pou Sheng is a leading retailer of sportswear and distributor of licensed products in the People’s Republic of China. As PCC is a Taiwan-listed company while Pou Sheng and its controlling shareholder Yue Yuen Industrial (Holdings) Limited are both Hong Kong-listed companies incorporated in Bermuda, the transaction is complex and requires a multitude of regulatory, court and shareholders’ approvals to be implemented.

S&C advises PCC on both the M&A and financing work streams. The S&C team was led by Gwen Wong and Ching-Yang Lin, along with Alan Zhang, Jerry Gao, Melaney Sy and Dickson Wong.