China outbound investment 2019 – top 3 deals in sport leisure industry

China outbound investment 2019 - top 3 deals in sport leisure industryJun. 17 – China’s record economic rising has changed the country into a global outbound investor. Chinese investors is now impacting the global sport leisure industry, there is a growing tends in Chinese outbound investments in the global sport leisure brands which may indicate China’s role in the future of the global wellness economy. Here are the Chinese investors’ current 3 deals in sport leisure investments.

China’s Wanda Sports Group files for US IPO – (Deal 1)

Wanda Sports Group, the sport-related business unit of Chinese conglomerate Wanda Group, filed on Friday for an initial public offering (IPO) on the US stock market. The company plans to list on the Nasdaq Global Market under the symbol “WSG,” with an expectation to raise up to $500 million, according to its prospectus filed with the US Securities and Exchange Commission.

It intends to use proceeds to repay loan related to group restructuring, with the balance for strategic investments and general corporate purposes. Morgan Stanley, Deutsche Bank Securities and Citigroup are the joint bookrunners on the deal. No pricing terms were disclosed. Wanda Sports Group is one of the world’s largest sports events, media and marketing platforms in terms of revenue in 2018, according to an industry report by Frost & Sullivan, a third-party research firm.

The China-based company has a global footprint with business in the more mature sports markets of Europe, North America and Oceania, as well as the emerging markets of China, Southeast Asia and Latin America. As of Dec 31, 2018, it worked with more than 160 rights owners, more than 750 brands and more than 120 media broadcasters, the company said in its prospectus. (Date: 10 Jun 2019)

China’s Fosun Expected to Bid for UK Travel Firm – ( Deal 2)

Chinese conglomerate Fosun International is considering a bid for all or part of United Kingdom-based travel company Thomas Cook, according to reports. Fosun is understood to be one of a number of potential bidders that have held preliminary talks with Thomas Cook, which is the UK’s oldest travel company.

Discussions are in the early stages and any potential takeover would be months down the line, according to Sky News, which first reported the developments. Sky News named New York City-headquartered investment company KKR and Swedish private equity firm EQT as two other interested parties. Thomas Cook declined to comment when contacted by China Daily, and Fosun had not responded to requests at the time of publication.

Established in 1841, Thomas Cook is the world’s longest-running tour operator. Initially founded as a railway service, the company now has 22,000 staff serving 19 million customers a year in 16 countries. The company runs its own airline and operates nearly 600 high-street travel stores around the UK. Last year, the company suffered heavy losses, brought on by an increasingly competitive travel market and a summer heatwave that saw fewer Brits go abroad on holiday. In November, Thomas Cook announced pre-tax losses of 163 million pounds ($211 million) for 2018, compared with profits of 9 million pounds the previous year.

Thomas Cook put its airline up for sale earlier this year when it also announced the closure of 21 UK stores and the loss of 300 jobs. The company’s chief executive, Peter Fankhauser, said 2018 had been a “disappointing year”. “The UK was particularly hard hit with very high levels of promotional activity coming on top of an already competitive market for holidays to Spain,” Fankhauser said when he issued the profit warning in November.

Thomas Cook and Fosun have already partnered in China, where they established a joint venture in January. That deal involves building two hotels, including a Chinese branch of the British travel company’s Casa Cook chain. The hotels will be constructed by Fosun and managed by Thomas Cook. Fosun has made notable investments in the UK in recent years. It purchased Premier League soccer club Wolverhampton Wanderers for 45 million pounds in 2016. And, last year, Fosun affiliate Resolution Property bought four floors of the Royal Exchange building in the City of London for 45 million pounds.

Fosun is also focusing on building out its tourism portfolio. Its travel arm, Fosun Tourism, took control of major French holiday group Club Med in 2015. And last week, Fosun’s venture capital branch, Fosun RZ Capital, led a $6.75 million Series A investment round in Splitty, an online hotel booking startup based in Israel. “Fosun will definitely invest more in travel,” Wilson Jin, chairman of Fosun RZ Capital, said last Monday when the investment was announced. The largest-ever acquisition of a British travel company by a Chinese buyer happened in 2016, when Ctrip took control of Edinburgh-based flight booking company Skyscanner in a $1.7 billion deal. (Date: 24 Apr 2019)

China’s Anta Sports-led consortium about to Complete Purchasing of Amer Sports – (Deal 3)

A consortium led by China’s leading manufacturer of sportswear Anta Sports is about to complete the purchase of Finnish sporting goods company Amer Sports, according to an announcement issued by Anta Sports Products Limited on 13 March, 2019. Anta Sports published an offer in Helsinki to purchase all the shares of the Finnish Amer Sports on in December, 2018.

So far, with the shares tendered in the offer representing approximately 94.98 percent of all the shares and votes in Amer Sports (excluding shares held by Amer Sports or any of its subsidiaries), Anta has satisfied all of the terms and conditions of the tender offer, which entitles the Chinese company to complete the purchase. “The completion trades will be settled and the offer consideration will be paid to the shareholders who have validly accepted the Tender Offer in accordance with the terms and conditions of the Tender Offer on or about 29 March 2019,” Anta said in a statement.

Amer owns world famous sports brands such as Wilson, Arc’teryx, Atomic and Salomon. The successful acquisition will enable Anta, which has a brand portfolio including ANTA, FILA, DESCENTE, SPRANDI, KINGKOW and KOLON SPORT, a greater global exposure and influence. Besides Anta Sports Products Limited, the consortium also consists of investment fund FountainVest Partners, Canadian Anamered Investments and Chinese Tencent. Anta has 58% ownership in the consortium. (Date: 15 Mar 2019)

Bedsides Chinese outbound investments trends in sports leisure industry, related numbers and volumes revealed that currently there is also a growing the country’s trends in food & drink, the total value of foreign food imports amounted to $77 billion in 2018 while avocado prices hit a 19-year high in response to a 250% increase in demand for imports). The China market is gigantic which contains almost 1.4 billion inhabitants, and the growing middle class is the major purchasing power. Over the coming 15 years, China’s total purchase of Foreign Goods would amount to US$30 trillion, while its purchase of Services would reach US$10 trillion in the same period, according to China International Import Expo 2018. There are also related list of Chinese importers for food & dink available. Particularly for current China outbound investment in European countries, such as China report: Chinese Investments in Switzerland – Recent Years Transactions of Businesses Deals available upon request, please contact with DCCC, or email to: info@dccchina.org

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