Retailer Esprit Holdings said it planned to extend its cosmetics subsidiary Red Earth International an additional HK$22 million in working capital by subscribing to a convertible note issue.
In addition, Esprit said it would continue to provide an additional HK$10 million to the company through a line of credit.
Red Earth distributes cosmetic and personal-care products under its own label in Hong Kong, Australia, New Zealand, Taiwan and Singapore.
Esprit, which holds 61 per cent of Red Earth, said the convertible notes would allow it to lift its stake to about 80 per cent of Red Earth on conversion.
The new Red Earth shares would be about US$1.80 per share and would be available to Esprit at any time.
The company said the price was reached after arms-length negotiations.