Yue Yuen unit plans $102 mln network expansion

HONG KONG, Jan 15 (Reuters) - Pou Sheng International, a sportswear retailing arm of Yue Yuen Industrial (0551.HK), said on Thursday it planned to expand its store network in China via a deal worth about HK$793 million ($101.7 million).

Pou Sheng (3813.HK) said it would buy the 70 percent of Farsighted International Ltd (FIL) not already owned by the firm for HK$428.6 million in cash and the issue of 393.6 million new shares at HK$0.925 each.

FIL holds the entire equity interest in sportswear retailer Dalian Dongzhijie Sports Production Development Co., which has 464 stores in 6 provinces in China, according to a filing to the Hong Kong bourse.

Pou Sheng also said it would sell 421.62 million new shares to its controlling shareholder Yue Yuen at HK$0.925 each for a total of HK$390 million to fund part of its acquisition. Share of Pou Sheng ended at HK$0.80 on Tuesday prior to a trading suspension. Trading in the shares will resume on Thursday.

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