Chinese sports brand Xtep at near 3-week high on deal to buy K-Swiss owner

Xtep International Holdings

03/05/2019 03:10

** Shares of Xtep International Holdings Ltd  1368.HK  rise
as much as 6.6 pct to HK$4.98, their highest since April 15,
after the Chinese homegrown sports brand says it will buy
K-Swiss owner    
    ** Fujian-based sportwear maker plans to buy E-Land Footwear
USA Holdings Inc, which also owns brands such as Palladium,
Supra, PLDM and KR3W, for $260 million in an all-cash deal, as
it aims to grow into a multi-brand portfolio group  urn:newsml:reuters.com:*:nL3N22E1U4
    ** CMB International Securities maintains "buy" on the
stock, saying Xtep is a better owner in terms of realising the
brands' full potential, while the takeover price is not
expensive
    ** As of last close, Xtep stock had risen 9.9 pct so far
this year
    ** Xtep has underperformed the Hang Seng Commerce & Industry
Index sector  .HSNC  by 15.8 percentage points in the past one
month
    ** The Hong Kong Hang Seng sub-index tracking consumer goods
companies  .HSCICG  eases 0.6 pct on Friday, and the China
enterprises index  .HSCE  falls 1.02 pct
    ** The Hong Kong benchmark index  .HSI  slides 0.8 pct

 ((Reuters Messaging:
donny.kwok.thomsonreuters.com@reuters.net))