Har­ness­ing op­por­tu­nity

David­off teams up with Sparkle Roll as it seeks to en­ter China

Virtuozity - - Cigars News -

Oet­tinger David­off AG and Sparkle Roll Group Lim­ited, a pub­licly listed com­pany in Hong Kong that dis­trib­utes top-tier branded con­sumer goods, an­nounced last month that they are en­ter­ing into a share­holder’s agree­ment to form a new joint ven­ture com­pany for David­off cigars and ac­ces­sories in China.

David­off will hold 49.9 per cent of the en­tity, and Sparkle Roll Group Lim­ited will hold 50.1 per cent. Both com­pa­nies had pre­vi­ously en­tered into an agree­ment.

Hans-kris­tian Hoe­js­gaard, 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.”

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.”

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