Fuqi Acquires 2 Chinese Jewelry Cos.
January 18th, 2008
Fuqi Acquires 2 Chinese Jewelry Cos.
CNNMoney.com
Fuqi International to Acquire 2 Chinese Jewelry Companies for About $18.5 Million
January 17, 2008: 02:11 PM EST
NEW YORK (Associated Press) – Fuqi International Inc., a Chinese jewelry maker, said Thursday it agreed to buy two jewelry companies, Shanghai Tian Mei Jewelry Co. Ltd. and Beijing Yinzhong Tian Mei Jewelry Co. Ltd., both also in China.
Fuqi will pay 135 million yuan ($18.5 million) to the current owner, Chujian Huang.
About $9.5 million consideration will be paid in cash and the remaining amount will be paid in restricted common stock.
The number of Fuqi shares included depends on the companies achieving some performance targets over a three-year period.
The deal is expected to close by the end of the first quarter of fiscal 2008.
Fuqi said the deal allows it to expand its retail presence. It reaffirmed its fourth-quarter guidance of earnings between 14 cents and 18 cents per share on revenue of about $43 million.
Shares rose 6 cents to $8.56 during afternoon trading.
Entry Filed under: Jewelry World
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