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Yue Yuen to spin off unit in US$800 mln HK IPO-sources

Tue Jan 29, 2008 10:39pm EST

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(For an expanded IPO diary, please click <HK/IPOMENU>)

HONG KONG, Jan 30 (Reuters) - Yue Yuen Industrial (Holdings) Limited (0551.HK), the world's top maker of sports shoes for brands such as Nike Inc (NKE.N), plans to spin off its retail business in a Hong Kong IPO this year to raise an estimated US$800 million, sources familiar with the deal said.

The spin-off, Pou Sheng International (Holdings) Ltd, is engaged in retail business in China, Hong Kong and Taiwan, including licensed shops, such as Reebok outlets, and under its own moniker, YY Sports.

"The spin-off is expected to raise about US$800 million, but the final size of the deal should depend on market conditions," one of the sources with knowledge of the deal said.

The firm has not fixed the listing timetable yet, and its spin-off will require the approval of Yue Yuen's shareholders.

Merrill Lynch MER.N and Morgan Stanley (MS.N) are the sponsors of the deal.

(US$1=HK$7.8)

(Reporting by Kennix Chim and Joseph Chaney; Editing by Anne Marie Roantree)



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