Sept. 8 (Bloomberg) -- The chairman and management at Belle International Holdings Ltd., China’s largest retailer of women’s shoes, are selling about $567 million in shares.
The shares of the Hong Kong-listed company are being offered at HK$15.28 to HK$15.70 apiece, according to a term sheet for the sale obtained by Bloomberg News. That’s a discount of as much as 6 percent from its last closing price. Morgan Stanley is a joint bookrunner for the sale.
The retailer, whose brands include Joy & Peace and Staccato, has gained about 24 percent in Hong Kong trading this year, compared with a 13 percent drop in the city’s benchmark Hang Seng Index. Belle had more than 13,000 outlets in mainland China at the end of June, and reported a 29 percent increase in net income for the first half of the year last month.
The company also warned then that China’s increasing wages and material costs may eat into profit margins. Net income in the six months through June rose to 2 billion yuan ($310 million), while sales climbed 25 percent to 13.9 billion yuan.
The term sheet didn’t disclose the name of the chairman selling Belle’s shares. Chief Executive Officer Sheng Baijiao was appointed acting chairman of the company after Chairman Tang Yiu suffered a stroke in April. Representatives at the retailer didn’t immediately respond to a call made outside regular business hours.
Sheng said last month that Belle may increase the number of stores by 15 percent this year. The retailer also had more than 160 stores in Hong Kong and Macau at the end of June.
To contact the reporter on this story: Zijing Wu in London at email@example.com