Investors increase stake in Factor Bikes to 52.87%

News from the Shanghai Stock Exchange points to a change in ownership stake at Factor Bikes, as Zhonglu Holdings “plans to acquire and increase its capital investment in Factor Bikes PTY Ltd.”

Brought to the attention of BikeBiz by bikeAgent, a business which serves as a bridge connecting Western and Eastern cycling worlds, the announcement states: “The transaction will involve equity acquisition and capital increase, with various parties holding a total of 52.8% of Factor’s equity.”

Invested parties outlined in the document are:

• Zhonglu Holdings – through its wholly-owned subsidiary, Zhonglu Advantage Global Investment, which “plans to acquire 19.70% equity in Factor for $13.26 million and increase the capital of Factor by $2.00 million. Upon completion, Global Investment will hold 21.15% equity of Factor.”
• VSI – which “plans to acquire 29.55% equity in Factor for “19.89 million and increase the capital of Factor by $2.00 million, holding 31.72% equity of Factor after the transaction.”

“Zhonglu Holdings, based on its strategic planning and current market environment, aims to focus on the bicycle industry chain. By investing in Factor, the company aims to achieve optimised resource integration.”

Clarifying this position, the document continues, “The company’s goal is to develop technical capabilities for independent research and development of international top-level carbon fibre bicycles and expand the market for high-end carbon fibre bicycles by leveraging Factor’s mature overseas sales network and marketing system.”

BikeBiz would like to thank Cristobal Perez for the technology-based translation of the SSE document.

Chinese brands going global

In sharing news of the transaction, BikeBiz was told that the new investment comes as Chinese bike manufacturer and brand, Forever, is seeking to expand its business, venturing into the Western marketplace.

This comes at a time when XDS has become the first Chinese bike manufacturer and brand to supply frames to a WorldTour Team, swiftly followed by becoming a ‘naming sponsor’. It has been suggested that the team, sponsored/known for more than a decade as Astana, may well, in the next 12 months, become the first Chinese-owned WorldTour Team.

*This article will be updated as further detail is confirmed.

Image credit: Factor Bikes