Chinese firm to buy Japanese sportswear maker for 1 yen
TOKYO —
Phenix Co, Japanese leasing giant Orix Corp’s wholly owned subsidiary that makes sportswear, will be acquired by a Chinese apparel firm for only one yen. The Beijing-based Chinese compamy, China Dongxiang (Group) Co, will buy at the price a stake of over 90% in Phenix, which makes and markets Kappa-brand sportswear, informed sources said.
The share sale agreement was reached between Orix and China Dongxiang the same day. The shares will be sold before the end of this month, according to the sources.
China Dongxiang will inject a capital of 500 million yen into Phenix after acquiring the shares. Its post-capital infusion stake will come to 91%.
Phenix, set up in 1952, is struggling with stagnant sales in Japan’s shrinking sportswear market. It started rehabilitating itself with the support of Orix in 2004 under a program backed by the Industrial Revitalization Corp of Japan, a now-defunct government-backed corporate rehabilitation body.
China Dongxiang has rights to market Kappa-brand sportswear in mainland China and Macao. The company plans to start selling Phenix’s ski wear in mainland China as well.
JCN
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4 Comments
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proxy
The only people I see wearing the Kappa-brand look like yaks or pros.
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Altria
Wait - I'll double that offer!
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funkyfresh
ohh no, if only i had taken back my change from the supermarket.
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irishosaru
Good news for the "kappa-slappers" in Britain and Ireland.
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