E-Land sells Teenie Weenie to China at 750 million dollars

E-Land sells Teenie Weenie to China at 750 million dollars. January. 26, 2017 07:04. by Hyoun-Soo Kim kimhs@donga.com.

E-Land Group has finalized talks with Chinese fashion group V-Grass to sell its fashion brand Teenie Weenie at 5.13 billion yuan (750 million dollars).

"Teenie Weenie’s net assets amount to 120 billion won (128 million dollars) in book value, and we sold it at 877 billion won (751 million dollars) considering brand value and future growth capability," E Land said. "It is the biggest sales price for a Korean fashion brand."

E Land has continuously attempted to sell off its popular Teenie Weenie brand since last year in order to improve its capital structure. It expects the sell off to help the company's debt to equity ratio fall to 240 percent from the current 300 percent. "We will promote real estate sales and IPO of E-Land Retail no later than June this year," an E-Land staff said. "It will help our debt ratio to decline to below 200 percent by the end of the year."

Teenie Weenie began sales in China in 2004, and has gained popularity for its unique bear character. Sales in China have reached 400 billion won (343 million dollars) annually. E-Land is selling the brand to a Chinese company but will continue to engage in its business.

E-Land will invest 10 percent of the money it gets from the sales to China's Teenie Weenie corporation. E-Land's women's clothes company in China will own 10 percent stake of Teenie Weenie. Operational know-hows will also be transferred during the period.