Mecox Announces Major Investment By Cnshangquan E-Commerce

(RTTNews) - Mecox Lane Limited (MCOX), a multi-brand and multi-channel retailer of apparel and accessories in China, Thursday said the company has been informed that some existing shareholders entered into a definitive share purchase agreement dated January 29 with Cnshangquan E-Commerce Co., Ltd.

As a result, Cnshangquan, a Nanjing-based provider of integrated marketing platforms for businesses and consumers, has agreed to purchase 290.56 million ordinary shares of the company from several existing shareholders, representing approximately 63.7 percent of the outstanding ordinary shares, for a total cash consideration of $39 million.

The deal is a private transaction intended to be exempt from the registration requirements under the Securities Act of 1933.

The transactions contemplated by the share purchase agreement will result in a change in control of the company upon consummation. The share purchase and sale transactions are expected to close in the second quarter.