Extraordinary China'S Acquisition Of Lining'S 25.23% Interest

In October 17, 2012, the extraordinary China Holding Limited (Hongkong Stock Exchange Stock Code: 8032) announced the signing of the purchase agreement in October 12th, and plans to major shareholders.

Li Jinzhi and his contacts bought the Li Ning Co Ltd's 25.23% stake in the Li Ning Co Ltd (Stock Code: 2331), and proposed five shares and one increase in the statutory capital stock plan.

The total purchase price is about HK $1 billion 359 million.

It is reported that the acquisition will be paid in the following two ways: first, the share price will be paid at HK $1 billion 780 million per share after the completion of the "five in one" after the completion of the "five in one". The share price is HK $0.325 per share (before completion of the five oneness, HK $0.065 per share). Two is paid through the issuance of the total subordinated convertible bonds of HK $780 million.

The convertible securities will not be listed on Hongkong or other exchanges.

It is expected that after the completion of the paction, Lining and his family will increase to about 70% from the current 55.88% outstanding China rights, but the conversion of the permanent subordinated convertible bonds will be limited by maintaining the statutory requirements that meet the 25% public shareholding.

In line with the issue of the issue of shares and convertible bonds, the group also proposes to add 11 billion new shares in the legal capital stock and increase the legal capital from HK $510 million to HK $1 billion 60 million.

In addition, according to the takeover agreement, if the profit attributable to equity holders of the Li Ning Co in each fiscal year from 2013 to 2017 exceeds the established benchmark after fair consultation, the extraordinary China will pay the seller "

The convertible bond is calculated on the basis of the valuation mechanism. The initial conversion price is 0.325 yuan per share and the upper limit is HK $780 million.

Executive director of extraordinary China

Said: "we regard this acquisition as a long-term strategic investment and expect to form a vertical holding structure through restructuring. At that time, as a comprehensive platform, China will hold more sports related resources as an integrated platform, and promote the business and resources of the extraordinary China and Li Ning Co to complement each other. By striving for more favorable business or financing conditions, we will have more competitive advantages in business development and bring new business opportunities to the group business.

Besides, as the main shareholder of Li Ning Co, China can not only benefit indirectly from the growth of Li Ning Co's business, but also strengthen the cooperation between the two sides, and it is expected to accelerate the pace of business development and consolidate our position in China's sports industry.

He also pointed out that along with the rapid development of China's urbanization and the vigorous development of the economy, people pay more and more attention to health, the more enthusiastic they are involved in sports related activities, and the central and local governments' policy support for the sports industry, it is expected that China's sports industry will continue to develop steadily.

Although the development of China's sports industry is still in its infancy, it is believed that the sports industry will have great potential in the long run.

This strategic move can not only enhance the strength of the extraordinary China, but also bring more synergy to both sides, so that we can more effectively grasp the booming business opportunities of the market and realize the vision of promoting the healthy life of Chinese urban residents in the long run.

It is understood that the acquisition, share five in one and increase the statutory capital stock plan will be adopted by the shareholders' special meeting, the paction is expected to be completed by December 31, 2012 at the latest.