China's Li Ning plans $1.4 bln share sale for international expansion

Viva Goods

28/10/2021 02:16

HONG KONG, Oct 28 (Reuters) - Chinese sportswear group Li
Ning Co Ltd  2331.HK  said on Thursday it planned to sell
HK$10.5 billion ($1.35 billion) worth of new shares to raise
capital for international expansion and for investment in newly
launched product categories. 
    The Beijing-based company plans to sell 120 million new
shares, or 4.59% of the enlarged share capital, to its major
shareholder Viva China Holdings Ltd  8032.HK , it said in a
filing to the Hong Kong bourse.
    The new shares will be issued at HK$87.50 apiece, or a 8.09%
discount to Wednesday's close, with proceeds also to be used for
investment in re-engineered infrastructure and supply chain
systems, for brand building and working capital.
    Viva will buy the new shares on completion of the sale of
the same amount of existing shares at the same price to
third-party investors. Its stake in Li Ning will be diluted to
10.37% from 10.87% after the deal.
    
    ($1 = 7.7779 Hong Kong dollars)

 (Reporting by Donny Kwok; Editing by Christian Schmollinger)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745;))