[/floatr]JCN: Chinese Firm to Buy Japanese Sportswear Maker for One Yen
Phenix Co., Japanese leasing giant Orix Corp.'s wholly owned subsidiary that makes sportswear, will be acquired by a Chinese apparel firm for only one yen, it was learned Friday. The Beijing-based Chinese compamy, China Dongxiang (Group) Co., will buy at the price a stake of over 90 pct in Phenix, which makes and markets Kappa-brand sportswear...China Dongxiang will inject a capital of 500 million yen into Phenix after acquiring the shares. Its post-capital infusion stake will come to 91 pct. Phenix, set up in 1952, is struggling with stagnant sales in Japan's shrinking sportswear market. It started rehabilitating itself with the support of Orix in 2004 under a program backed by the Industrial Revitalization Corp. of Japan, a now-defunct government-backed corporate rehabilitation body. China Dongxiang has rights to market Kappa-brand sportswear in mainland China and Macao. The company plans to start selling Phenix's ski wear in mainland China as well.
