Kidswant Children Products Co.,Ltd. (SZSE:301078) entered into an agreement to acquire 65% stake in Leyou International Business Group Co., Ltd. from Leyou Technologies Holdings Limited for CNY 1 billion on June 9, 2023. Under the terms of agreement, Kidswant Children Products will pay the deal value CNY 1.04 billion in two installments, 40% of the deal value i.e. CNY 416 million and 60% i.e. CNY 624 million. Leyou International Business Group reported total assets of CNY 1,361,186,200, operating income of CNY 1,940,701,200 and net profit of CNY 98,827,700 till December 31, 2022.

The transaction is subject to antitrust approval. The transaction got the approved by the board of Kidswant Children Products. HSBC acted as sell-side financial adviser to Warburg Pincus on its divestment of 65% stake in Leyou to Kidswant.