ELand (Lianyi Group) or delisting of Chinese business listing in Hong Kong

Sources said that South Korea's apparel manufacturing and retailer ELand (Elena Group) plans to spin-off the listing of Chinese businesses in Hong Kong and has submitted a listing application to the Hong Kong Stock Exchange. The company strives for a public offering in the first quarter of 2008, with an initial funding scale of USD 2-3 billion.

The foreign media reported on December 27 that there was news that South Korea’s apparel manufacturing and retailer ELand (Elena Group) planned to spin-off the listing of Chinese businesses in Hong Kong and submitted a listing application to Hong Kong Stock Exchange. Listed for the public offering in the first quarter of 2008, the initial fund-raising scale is 2-3 billion US dollars (approximately HK$156-236 million), and UBS is a listed sponsor.

The group was founded in South Korea in 1980 and currently operates in South Korea, China, the United States, the United Kingdom, Vietnam and Sri Lanka. It covers clothing, retail, restaurants and hotels, home furnishing, real estate and IT. It has more than 80 apparel brands. In 2006, the Group spent US$1.86 billion to acquire South Korea’s Carrefour, which had total sales of US$4 billion in 2006.

In terms of its business in China, ELand entered the Chinese market in 1994 and established Yiyi Fashion (Shanghai), which later expanded to first-tier cities such as Beijing, Qingdao, Dalian and Dongguan. The Group has brand stores in New World Department Store (0825) and Intime Department Store (1833).

Apart from ELand's strong growth in domestic demand, in the first quarter of 2008, there will be at least five retail enterprises with the concept of domestic demand. They will come to Hong Kong for IPO listings, including China Spring, Shenzhen Maoye, ITAT, Ocean Department Store and spin-off from Yueyuan (0551). Pou Sheng Department Store, a total of nearly 20 billion Hong Kong dollars.