Lancy Group, the Chinese apparel company, plans to set up a joint venture with Korea’s KEB Hana Bank to enter the project financing market both in China and Korea, local news service Edaily reported on Sept. 7.
According to the report, Hana Bank will acquire a 25 percent stake in Lancy’s 100 million yuan (US$15 million) affiliate that is expected to be renamed as a JV between the two firms.
Screen capture of Lancy Group’s English website
The bank will also has the right to appoint one of the five internal directors at the new entity.
Lancy, led by Chairman Shen Dongri, a third-generation Korean-Chinese, is best known for its acquisition of Korea’s infant clothing company Agabang & Co.
in 2014. The deal price was 500 billion won (US$458.20 million).
It was a win-win deal for both firms. Agabang secured a distribution channel in the soaring Chinese market, while Lancy improved its business portfolio for better profitability. Lancy’s annual revenue is about 1 trillion won.
Since then, Lancy has continued investment opportunities in Korea, Edaily said.
Through the JV, Hana Bank is hoping to improve profits from its non-banking businesses.
By Lee Ji-yoon (firstname.lastname@example.org