Oettinger Davidoff AG and the Hong Kong listed Sparkle Roll Group have rubber stamped their earlier agreed multi-million dollar Davidoff cigar and cigar accessories joint venture for China, with Davidoff taking 49.9 % and Sparkle Roll 50.1%.
While the framework agreement was announced several months ago, the development is nevertheless a huge commitment for both companies with Oettinger Davidoff agreeing to subscribe for 499 Shares in the New Joint Venture Company, representing 49.9% of the total number of the issued shares at a total purchase price of US$1.497m (equivalent to approximately HK11.677m).
For its part, Sparkle Roll/CGL is subscribing for 501 Shares representing the 50.1% balance at a total purchase price of US$1.503m (equivalent to approximately HK$11.723m).
Commenting on the landmark arrangement, Hans-Kristian Hoejsgaard (left), CEO and Board member of Oettinger Davidoff AG, said: “The signing of this Joint Venture agreement heralds a new era in our relationship with Sparkle Roll and in our commitment to building the Davidoff business in China.
“This market represents the single largest business opportunity for Davidoff in our time and I am convinced that with this new Joint Venture we will be able to exploit that opportunity to its fullest.”
Mr. Tong Kai Lap, Chairman of Sparkle Roll, said: “Since the individual customers of Sparkle Roll’s existing principal business in top-tier automobiles are predominantly people with high spending power, the Joint Venture will create synergies for both companies. The end products in both businesses are perceived to have the same target customer group and market positioning in the premium segment.”
The Sparkle Roll Group’s business reads like the Who’s Who of the luxury goods industry, with its main business principally engaged in the trading of top-tier automobiles, high-end watches and jewellery, fine wines and other branded consumer goods in the PRC, Hong Kong, Macau and Malaysia. It also operates dealerships for top-tier automobiles such as Bentley in Beijing and Tianjin, Lamborghini and Rolls-Royce in Beijing.
The original announcement relating to this deal was made earlier this year and referred to in Davidoff’s results statement earlier this year.
The first part of a comprehensive interview with Hans-Kristian Hoejsgaard also appeared in the September issue of TRBusiness, with the second due to appear in the October TFWA show issue in a few week’s time.