Investment in one year after the incident quiet, TPG to consumption chain for the first checks. May 25 evening 9:00, women's, Daphne listed companies (00210.HK) revealed that the introduction of Pacific Investment Co., Ltd. USA and Germany (TPG Capital) a total of 550 million yuan (about 81 million U.S. dollars) for strategic investment, hold Daphne after expanding 14.5 percent stake. Under

crisis, PIPE financing (ie, Private Investment in Public Eqity) has become a private equity financing are the most enthusiastic manner, replacing the previously popular financing leverage.

5 26, Daphne closed at 3.62 Hong Kong dollars, up 11.4%.

"Daphne will be from the manufacturer to the retailer's changing," 26, CITIC Securities Company under the Direct Investment Managers Jinshi told reporters. Uncertainty faced by consumer demand, Citigroup analysts on whether the stores to reduce the fixed rent for concern.

Meng TPG interpretation PIPE financing to make a

as numerous investment and foreign investment institutions have been the same as that, TPG and Daphne's expression is "to enjoy each other." President Daphne Chan Yeng Kit said: "This will not only help us to further consolidate the group's market leadership position, Daphne is more conducive to the development of a world-class enterprises." Daphne went on to say that ChenXianMin Managing Director : "TPG's global network will also increase the market competitiveness of the Group to carry out a broader business opportunities."

details the existence of the devil. Under the agreement, TPG agreed to subscribe for 550 million yuan in aggregate principal amount due in 2014 unsecured convertible bonds. The Notes carry a coupon rate of 3.125 percent, paid every six months and may be converted to specified provisions of the ordinary shares of Daphne, the beginning of the proposed price per share for the Hong Kong dollar 3.50. If the bonds are not converted will be redeemed face value.

In addition, TPG also received one hundred million copies of each can be converted to a common stock warrants, the initial exercise price of 4.00 Hong Kong dollar per share. Warrants valid for five years, if TPG full exercise of stock options, you will be Daphne 100,000,000 ordinary shares. If all bonds and warrants were fully exercised, TPG will hold 279,000,000 shares Daphne ordinary shares, equivalent to Daphne by the enlarged share capital of about 14.5%.

"dividend yield plus 30% discount the price of all the count, which is equivalent to diluted earnings per share cost of 2.3 Hong Kong dollars, a discount is outrageous." Consumption of a long-term follow-up analyst to do determine the above. In contrast, on the 26th, which closed at 3.62 Hong Kong dollars, up 36.5 percent discount.

Citibank day of Daphne on the TPG investment research report, according to the report, assuming that all of one year after the TPG Convertible, Daphne will have a 6-10% earnings per share diluted, net debt ratio increased from 7% to 18%, it can be expected net income fell to negative 15.2 percent.

investment in women's market, not by accident. State Analysis Securities analyst Zhang Bin said that the bank is expected to recover next year, the domestic consumer market, Daphne sports footwear and apparel market efficiency will be improved with the growth rate is expected to benefit more than footwear sportswear. With the industry growth, Daphne will be the future of steady growth performance ,09-11-year net profit of 2.115 billion yuan, 2.442 billion yuan and 2.981 billion yuan, an increase of 5.21%, respectively, 15.45% and 22.06%.

for Hong Kong listed companies with Belle, but also as early as 2005 by Morgan Stanley and CDH to spend 300 million yuan in investment.

TPG investment team in Asia has just undergone major personnel changes, the two partners to leave, the investment is the second in March Daphne changes, TPG's first hit single. To leverage the financial crisis, and is a fatal blow to the PE. Not long ago, TPG, in a letter to investors said that in recent months, the group had considered the 140 LBO transactions, but did not reach 1. Daphne's shares on or can be regarded as a policy shift.

other current TPG's investment in China also included in the Shenzhen Development Bank, motor vehicles and auto parts sales business Guanghui service joint-stock companies and the new ownership group, which is a Japanese financial firms in China branches.

reserved foreshadowing: transition retailers?

TPG urgent intervention. At 5:00 p.m. on May 26, Daphne held formal shareholders meeting to announce the formal introduction of TPG, the TPG appointed CFO and is responsible for the management of retail outlets.

Morgan Stanley, according to the latest disclosure reports, in accordance with the agreement, TPG will receive access to the Board of Trustees of the rights of three, designate one independent director, a board of directors and supervisors, as well as Daphne CFO and is responsible for the selection of the supply chain competent. Daphne at the same time to be related to the above-mentioned staff from the TPG to pay 300,000 U.S. dollars each year as salary.

the company announced that, 5.5 billion will be used for the further expansion of "Daphne" and "shoe" brand retail network in China. In addition, if TPG after the full exercise of warrants will be the Hong Kong dollar 400 million of additional funding will be used for general working capital.

Notice disclosure, Daphne plans to open 300 new stores, but this will depend on the first half 2009 sales performance is not a foregone conclusion. "Daphne will realize from the manufacturer to the retailer's changing," CITIC Securities Company under the Direct Investment Managers Jinshi told reporters.

Citigroup analysts said that part of Daphne's management hopes to open more stores in order to reduce fixed overhead costs, management is another part of the pattern of joining. At the same time, Daphne will have to face the challenges of mitigation business. Since the company will close all of the Nike store losses, the brand campaign will return to profitability. The future, the company will wait for an opportunity to sell Adidas stores, and gradually narrow their business.

Chau Hu BOCHK analyst said the company optimistic about the prospects for development, the risk but there are two tips: First of all, the total profits of more than 90% of the brand Daphne enormous pressure on profit margins, operating profit margin narrowed by 3.3 percentage points to 13.8%. The second half in which they are responsible OEM retail sports brands such as Nike and Adidas, is also in a loss, loss value of 2.8 million Hong Kong dollar is expected. At the same time, the high inventory it is difficult to change the status quo. In his view, Daphne in the second half of 2008 in the first half of 2009, operating performance appears to be repeated. Higher stock companies also forced to lower its discount sale, or else face the end of 2009 appear decline during the first half of the risk of loss.