This can set off a loan that Hong Kong-based LionRock borrowed from Viva China.
Hong Kong-based holding company Viva China Consumables is in talks with LionRock Capital Partners for its plans to buy a majority stake in British shoe retailer C&J Clark for $69.78m (£51m), Viva China announced in a bourse filing.
The acquisition will be made through buying a 51% interest in the company wholly owned by LionRock, which would be set off against an equivalent amount of the loan that LionRock borrowed from Viva China if materialised.
In September 2020, Viva China agreed to lend up to $73.88m (£54m) to LionRock for financing the acquisition of equity interests in a company wholly owned by LionRock. The parties agreed that the loan can be converted into equity subscription in the earlier acquisition. The following month, LionRock agreed to acquire a majority in Clark.
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