(Yicai Global) June 15 -- Shares of the Chinese owner of sportswear brands Merrell and Saucony jumped to a historic high after the retailer said the renowned private equity firm Hillhouse Capital Management will invest HKD1 billion (USD128.8 million) in it.

Xtep's stock price [HK:1368] soared over 30 percent to an all-time high of HKD11.60 (USD1.50) today. The company went public in Hong Kong in 2008.

GSUM IV Holdings, managed by the Beijing-based early investor of Tencent Holdings and Baidu, will subscribe for HKD500 million (USD64.4 million) worth of Xtep's convertible bonds, equivalent to 2 percent of the company’s total share capital, the Fujian province-based firm said in a statement today.

The proceeds from the convertible bonds will be used for debt refinancing, and some will be considered working capital, it added.

Xtep launched its strategy to go international through mergers and acquisitions in 2019 and has garnered foreign brands such as K-Swiss and Palladium under its umbrella.

Xtep's board of directors believes that Hillhouse's in-depth understanding of the service industry and its extensive online and offline networks will bring new opportunities for K-Swiss and Palladium, it added.

Editor: Emmi Laine, Xiao Yi