Japan’s Itochu Corporation announced on February 16 that it had acquired 28% of Shanshan Group’s shares. Neither party wanted to disclose the specific amount of the acquisition that day. According to recent disclosures by Japanese media, Itochu Trading Co., Ltd. invested 10 billion yen (approximately 746 million yuan) in this acquisition, but Shanshan Group said this figure was inaccurate.
Shanshan Group founder Zheng Yonggang admitted in an interview that day that what Shanshan Group and Itochu Trading Company actually signed was a “bet” agreement: after three years, if Itochu Trading Company participates in the operation of Shanshan Group and fails to achieve its expected goals, Shanshan Group will Shan Group can unilaterally propose to repurchase the equity at the original price.
According to reports, four people from Itochu Trading Company will join the management of Shanshan Group. Zheng Yonggang said that the 28% equity of Shanshan Group transferred to Itochu Trading Co., Ltd. is all equity held by him personally. There is no such thing as the company’s financial constraints or “discount sale” of assets. He values future cooperation more.
Nobuo Kuwayama, general representative of Itochu Corporation in China, said that Itochu Corporation’s commitment to increase investment in China’s consumer-focused areas such as textiles will not change, and it will not rule out further acquisitions of Shanshan Group shares in the future. According to reports, as a “betting” party, if Itochu Corporation believes that it cannot integrate into the management of Shanshan Group or the corporate culture does not match, it can unilaterally propose to transfer the equity at the original price.
