(Yicai Global) Dec. 27 -- Nanji E-Commerce plans to buy the China business of South Korean apparel maker TBH Global, which owns well-known women’s fashion brands such as Basic House, Mind Bridge, and Jucy Judy, for CNY510 million (USD80.1 million).

The deal, which will need regulatory approval, includes 78 China-registered trademarks, valued at CNY330 million, as well as the company Basic House Shanghai, Nanji said in a statement yesterday. Four of the trademarks are registered in Hong Kong.

The Shanghai-based online retailer, which sells thermal underwear, handbags, and home appliances, has been woking to expand its brand ecosystem this year. In July, Nanji said it had formed a joint venture with C&A to handle the Dutch fast-fashion retailer’s trademarks online in China.

The value of some of TBH Global’s brands has risen due to the emergence of content-based e-commerce, so their acquisition will help Nanji build its brand system, it said yesterday. The deal will also boost the Chinese firm’s research and development, production, and management, though there is some uncertainty over whether so many brands can be successfully integrated, the firm added.

Shares of Nanji [SHE: 002127] closed 0.9 percent up at CNY6.87 (USD1.08) apiece today. The stock has halved in value this year.

There had been speculation about such a deal for some time. Early in 2019, media reports said that TBH Global planned to sell its China business to raise USD200 million in order to pare debt. In 2018, the Seoul-based company lost KRW57.7 billion (USD48.7 million).

Basic House’s China business is also unprofitable. Last year, it had a net loss of CNY170 million on revenue of CNY1.3 billion (USD209.9 million). Its negative net asset value was CNY265 million as of last December.

Editor: Emmi Laine, Xiao Yi