SCMP Group acquires MyDress.com for over 5 million dollars

Asian leading publishing house SCMP Group is venturing beyond media with the acquisition of MyDress.com. The publisher of the century-old South China Morning Post newspaper is reported to have agreed to pay over 5.12 million dollars for the Hong Kong-based online retailer.

As reported by Chinese media, the Hong Kong-headquartered media holding company, owned by Malaysian-Chinese billionaire Robert Kuok Hock Nien, said it has agreed to acquire a majority stake in MyDress Holdings Ltd, operator of MyDress.com.

“This acquisition [of MyDress] underpins the SCMP Group’s determination to fortify its digital development growth thrust,” said Robin Hu, CEO of SCMP Group.

SCMP Group goes from publishing to e-commerce with the MyDress.com acquisition

According to the ‘South China Morning Post’, SCMP Group is paying circa 39.7 million Hong Kong dollars (5.12 million US dollars) for a controlling stake in the e-commerce retailer.

This breaks down as 13.6 million Hong Kong dollars for the acquisition of existing issued shares of MyDress, 23.0 million Hong Kong dollars for further subscription of the enlarged share capital, and 3.0 million Hong Kong dollars for the subscription of convertible notes, both to be issued by MyDress, according to the company’s announcement.

SCMP Group, through its wholly-owned subsidiary Affleck Ltd, will own 56.65 percent of the enlarged share capital of MyDress upon completion of the transaction. Affleck also has a one-time call option to acquire all remaining shares in MyDress.

“Through MyDress, we will gain a firm foothold in the e-commerce space in Hong Kong and extend along the internet value chain of ‘content-community-commerce’, thus enabling new monetisation possibilities,” said Hu in a statement Tuesday.

Founded by local entrepreneurs Edmund Wong and Leon Lai, MyDress launched its e-commerce platform in 2013, where it sells over 50 brands covering boutique and fast fashion apparel, accessories and undergarments.