selldown-in-dongxiang-prices-at-midpoint

Sell-down in Dongxiang prices at mid-point

The $164 million deal comes after an 18% rally in the share price and sees a Morgan Stanley fund offload just over half of its remaining pre-IPO investment.

By Anette Jönsson

May 06, 2008

A block of shares in sportswear designer and retailer China Dongxiang Group, which owns the rights to the Kappa brand in China, was in the market last night and changed hands at a 6.3% discount to yesterdayÆs close for a total deal size of HK$1.28 billion $164 million. The discount was largely in line with recent Hong Kong deals, but nevertheless encouraging because it represented the mid-point of the indicated range.

The seller was a private equity fund owned by Morgan Stanley, which invested in Dongxiang before its initial public offering in October last year and thus wouldnÆt have been too worried about the fact that the share price is currently trading below...

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