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| Thursday, 5 January 2012, 16:22 HKT/SGT | |
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SHANGHAI, Jan 5, 2012 - (ACN Newswire) - Safedom Technology Corporation, a privately held Chinese condom maker, is seeking a dual-listing in London and Hong Kong Chief Executive Officer Qiang Fu said. The company also plans to expand into European markets via acquisitions, and is in talks with several potential targets, Fu added. The company would be glad to entertain approaches from financial advisors who can suggest potential targets.
Safedom has already talked to some potential underwriters in London for a listing mandate, and it seeks to realize the dual-listing next year, a person familiar with the situation said. Though no official mandates have been given so far, CCB International, the second largest shareholder in Safedom, is likely to advise on its Hong Kong listing, the person familiar noted. Safedom's management team holds the majority stake in the company.
Fu confirmed that Safedom has a dual-listing plan but added that its growth focus right now is to aggressively expand into the overseas market. Deputy General Manager, Cheng Huang noted that it seeks to complete two acquisitions in Europe next year. The targets should have well-established brand names and marketing expertise that Safedom can leverage with its virus-proof latex condom technology and beef up sales in Europe efficiently, Huang noted.
For the European market, Safedom has set aside around USD 100m for market entry and product promotion, including the potential acquisitions, Huang added. It is especially interested in targets in the UK, France, and Germany, he noted.
Safedom will definitely seek a majority stake acquisition, but would prefer to maintain the original brand marketing team in any target company. "We value the brand marketing expertise that European players have, and we want to learn from them," Huang said.
Safedom achieved sales of CNY 140m (USD 22m) in 2010, and expects a growth rate of over 25% in 2011, Huang noted.
Meanwhile, Safedom is also in talks with four to five potential targets in China, as it needs to scale up manufacturing capability and add low-end products via buys, Huang said. Going forward, Safedom will put emphasis on its major high-end products in overseas markets, and achieve around 60% of its sales from overseas markets, which include Europe, Africa and Macau.
Safedom's products offer the concept of "protecting the female", and around 80% customers are white-collar females, Fu noted. It also has gotten the Conformite Europeenne (CE) certificate to produce and sell its products in Europe, he added.
Source: mergermarket
Topic: Press release summary
Sectors: Daily Finance, Daily News
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