Chinese Firms Target $6.8 Billion Footwear Deal

A group led by Hillhouse Capital Group and CDH Investments has offered to acquire Belle International (HKG: 1880) in a take-private deal that would value the Hong Kong-based shoe retailer at about $6.8 billion. The firms have asked Belle shareholders to consider an offer of HK$6.30 per share, a 20% premium to the company’s stock price when it stopped trading April 18. Hillhouse would own a 56.8% stake in the business and CDH a 12.1% interest.

Global private equity activity in the footwear sector experienced an uptick in 2016, with 29 deals in the space completed last year after 24 transactions were completed in both 2014 and 2015, per the PitchBook Platform. But this year is off to a slow start, with just two completed transactions to date.

PitchBook subscribers can check out the full data on PE activity in footwear businesses right here.

Warren Buffett On The Dangers Of Using Complex Math In Investing

Berkshire Hathaway Warren BuffettWhen he's trying to figure out if a company is a good investment, Warren Buffett does not rely on complicated formulas, spreadsheets, and higher-level math. He believes higher mathematics may actually be "dangerous and will lead you down pathways that are better left untrod," if used in the investment process. Q2 2020 hedge fund letters, Read More

Article by PitchBook