LONDON — Viva China, a venture company controlled by Chinese Olympic gold medalist Li Ning and the largest shareholder of his namesake sportswear brand, is to acquire the loss-making Italian shoemaker Amedeo Testoni for no more than 81.57 million Hong Kong dollars, or $10.48 million at current exchange.
The group has agreed to purchase the entire issued share capital of Sitoy AT Holdings Co. Ltd., which owns Amedeo Testoni and its diffusion line i29, at a consideration of 50 million Hong Kong dollars, with a post-closing payment of around 3.5 million euros.
In 2018, the brand, which was founded in 1929 in Bologna and formerly named A.Testoni, was bought by Sitoy International Ltd., a Hong Kong-based manufacturer of handbags and travel goods as well as a brand distributor in Greater China for Amedeo Testoni, Cole Haan, Tuscan’s and Fashion & Joy. The group had an ambitious retail expansion plan for Amedeo Testoni, but it was never fulfilled.
Amedeo Testoni logged a loss of 5.8 million euros with an unaudited net asset value at 13.6 million euros, or $15.71 million, for the year ended June 2021. The brand operates 36 stores across Italy, China, Japan and South Korea.
Having acquired struggling high street brand Bossini and British shoemaker Clarks via an investment fund with LionRock Capital, Viva China said acquiring the brand at a discount provides a good investment opportunity.
“The group is confident that the management team of the consumables business who possess extensive experience in the apparel business and the group would be able to turn around the financial performance of Amedeo Testoni, which would, in turn, expand the income source of the group and generate better returns for the shareholders,” the company added.