The Acquisition Of Anta 34 Billion 800 Million Came To A Conclusion On Friday, Reaching 7 Billion For Repayment Of Debts Of The Parent Company.

The Anta Sports Products Limited (hereinafter referred to as "Anta sports") announced the latest progress in the acquisition of AmerSportsCorporation in March 4th. The acceptance period of the tender offer will expire on March 7, 2019. If the approval of the competent authority has been announced, all the necessary competent authorities' approval has been received to meet the conditions of the offer which are required to meet the requirements for completing the offer. Therefore, the terms of the tender offer will not be further extended.

The announcement said the offeror will announce the preliminary results of the tender offer in March 8, 2019 and will issue a notice on the results of the tender offer before or after March 12th.

In addition, the completion of the tender offer is still subject to the announcement of the results of the tender offer or the conclusion of the previous offer conditions (or the exemption from the offeror), including (but not limited to) the fact that the tender offer has been accepted (with any 90% of the outstanding shares held by the offeror) and the voting rights have been effectively accepted in respect of the shares issued by the AmerSports.

It was learned that the investor group was made up of Anta sports, AnameredInvestments (Lululemon founder ChipWilson's investment company), Fang Yuan capital and Tencent. Tencent and AnameredInvestments were new investors after the announcement in September 2018.

The investor consortium will set up a new company, JVCo, to complete the paction. The proportion of Anta sports, AnameredInvestments, Fang Yuan capital and Tencent shareholding is 57.95%, 20.65%, 15.77% and 5.63% respectively.

Reporters learned that the acquisition of the financing structure shows:

The investors' consortium members will invest 2 billion 663 million euros in the total stake to JVCo based on the share of the JVCo, of which Anta sports, AnameredInvestments, square source capital and Tencent will invest 1 billion 543 million euros, 550 million euro, 420 million euro and 150 million euro respectively.

At the same time, the investor consortium will carry out debt financing totaling 3 billion euros, including 1 billion 300 million Euro 5 year loan (JVCo for borrowers) and 1 billion 700 million euro 7 year non recourse loan (Target Corp for borrowers). The 5 billion 663 million euros raised will be used in the following aspects:

1, the investor consortium will purchase all AmerSports shares at the price of 40 euros / share, the purchase price is consistent with the previous announcement, and the total consideration will be 4 billion 600 million euros.

2, repay AmerSports debt of 950 million euros (about 7 billion 211 million yuan - the first textile net note).

3, the rest will be used to finance and other paction costs.

After the successful completion of the paction, AmerSports will continue to operate as an independent company independent of Anta. It will form an independent board of directors by the consortium of investors. At the same time, the consortium of investors has asked Mr. HeikkiTakala (Amer's current chairman and CEO) and its principal executives to continue to manage the company.

AmerSports under the new shareholding structure, the management team will independently execute its business plan in accordance with the strategic direction of the board.

Public information shows that Amersports has many brands, including Salomon (Salomon), Wilson (WilsonSportingGoods), Ato Mick (AtomicSkis), Arc (teryx), Marwick (Mavic), santuo (Suunto), ENVE (ENVEComposites), PeakPerformance, and so on. It covers a variety of sports and sports products, and has a layout in the main markets.

AmerSports's products cover sports equipment, clothing, footwear and accessories, covering sports including tennis, badminton, golf, rugby, football, baseball, basketball, alpine skiing, snowboarding, cross-country skiing, fitness, bicycles, running, mountaineering and diving.

In 2017, AmerSports net income increased 2% to 2 billion 685 million euros, and net profit fell 26% to about 93 million euros.

AmerSports currently has limited layout in mainland China, with annual retail sales of about 1 billion yuan (4.5% of the group's total revenue), and the huge growth potential of the Chinese market remains to be released.

Company analyst Guo Haiyan said that for Anta, AmerSports has many brands, but its distribution in China is limited, and its sales in 2017 are about 1 billion yuan. It is noteworthy that the synergy between the two is relatively good. First, the long-awaited purchase marks the beginning of the internationalization process of Anta, which has many brands. Secondly, AmerSports focuses on the market segments of sports products, so Anta is expected to further enrich its brand and product mix. Especially, the most important point is that Anta's retail experience, regional network, supply chain resources and logistics facilities are expected to help AmerSports improve its operation in the Chinese market. Moreover, after the completion of the acquisition, a stable management team and performance will help Amer achieve a smooth pition and international business will be carried out normally. CICC

In the 2017 annual report, AmerSports said, "the company will continue to focus on developing core businesses and five key areas: clothing and footwear, the United States, China, B2C and digital related equipment and services". In this acquisition, all investors can use their expertise to provide strong motivation for AmerSports to achieve their strategic goals, such as Anta's excellent retail and multi brand management performance in China, the O2O layout of Tencent and the rich experience of ChipWilson in North American retail industry (Lululemon is growing rapidly).

Guo Haiyan said that according to the relevant accounting standards, the 57.95% profit of AmerSports after the completion of the paction will be included in the Anta profit statement's "joint venture sharing profit" item (also reflected in the balance sheet's "joint venture rights").

Based on market consensus expectations, AmerSports is expected to contribute about 835 million yuan to Anta's profits, which will completely cover new financial costs, about 174 million yuan.

Therefore, it is expected that this paction is expected to be thickened by 13% of earnings per share in 2019. In addition, although the profitability of AmerSports has yet to be improved, there has been no loss in outdoor, ball games and fitness businesses in recent years.