The Antimonopoly Committee of Ukraine granted permission for ManWah to purchase shares of Home Group related to its assets in Ukraine. The deal will provide Man Wah Group with 50% of the voting shares in the top management of the Home Group.
According to the agreements between Man Wah Group, HG International and Home Group reached in November 2016, Man Wah HG International was committed to transfer ownership of its the subsidiary structures to the Home Group, that is 75% stake in most of the enterprises in Poland, the Baltic States and Ukraine. Whereas Man Wah Group took obligation to acquire a 50% stake in Home Group. The overall value of the deal is estimated to stand at EUR 50mln.
At this, Man Wah Group is entitled to provide USD 2mln loan for a year to the Home Group, as a senior and non-subordinated claimer.
Upon the completion of the strategic deal, ManWah will gain access to the production assets and the sales network of the Home Group in Europe. ManWah had difficulties in the markets facing competition from the East European manufacturers of sofas which could make faster deliveries to Europe compared to the Chinese exporter. For the Home Group, the alliance benefits from the fact that it will give the company an opportunity to expand its production facilities in Europe, as well as gain access to the production bases, suppliers and sales networks of the ManWah Group in China.
Home Group specializes in the production and sale of lounge furniture, mattress beds in Europe, and production and sales of stationary sofas in China and Europe. The group owns 5 plants in Poland, the Baltic States and Ukraine.
The ManWah Group, in its turn, carries R&D in production and sale of sofas, mattresses, panel furniture and furniture fittings in China, North America and Europe.
