Lining: Extraordinary Stock Swap Is An Action To Develop The Big Sports Industry.

Since July, when Lining returned to office and took up the post of president, the executive level of Li Ning Co has ushered in a major cleansing.

At the same time, at the same time, Lining's shareholding also changed many times.

In October 17th, Lining (2331.HK) announced that the extraordinary China (8032.HK) had agreed to acquire 266 million shares of the company, accounting for about 25.23% of the issued share capital of the company, with a price of 1 billion 359 million yuan (HK $, the same below).

This is Lining's news of equity changes once again after the introduction of TPG, the second largest shareholder of strategic investors.

If the stock exchange is successful, extraordinary China will become the largest shareholder of Lining.

Will it be affected?

Lining personally replied to reporters: "restructuring is just an action I want to develop the big sports industry, hoping to prepare for another increasingly competitive competition in the industry through another listing platform."

Lining is not out of control.

According to the announcement, Lining's board of directors has been informed that extraordinary China has entered into an agreement on sale and purchase, which will acquire 266 million shares of Lining shares, accounting for about 25.23% of the existing issued shares of the company.

According to Li Ning Co, after the completion of the paction, the extraordinary China will hold 25.23% stake in the Li Ning Co, while Mr. Lining (and his family) will have a shareholding ratio of outstanding China, which will rise to about 70%, and will have a permanent convertible bond of extraordinary China.

Li Ning Co said: "after the completion of the paction, the shareholding relationship between the two companies and Mr. Li is close, and all the duties of Mr. Lining in the Li Ning Co and the extraordinary China remain unchanged, which means that he will not only reduce the investment in Li Ning Co, but also help the two listed companies to achieve synergy."

In response to Lining's position, Li Ning Co replied to the newspaper, "Mr. Lining himself will remain unchanged in the management responsibilities and responsibilities of Li Ning Co. He will continue to chair the board of directors as executive chairman and work with his top management team to formulate and implement the overall strategy of Shi Lining."

According to statistics, Lining is also the chairman and executive director of the extraordinary China, with the title of president in the Li Ning Co.

According to the Li Ning Co's reply, that is to say, Lining will not lose his controlling status.

According to Li Ning Co's 2012 China Daily, Lining holds 64.259% of Li Ning Co shares.

Among them, 25.398% are the interests of the controlled company and the remaining 38.861% are the interests under the agreement.

In the rights and interests of the controlled company, Victory Mind holds 116 million 374 thousand shares and Dragon City holds 160 million shares.

These shares will become an extraordinary Chinese holding after changing shares.

Extraordinary assistance

Because of our country

In the downturn, the performance of Li Ning Co has also declined sharply. Therefore, some analysts believe that Lining himself will focus on the development of extraordinary China.

But Lining himself had different views in the interview with our reporter.

Lining told reporters personally: "restructuring is just an action I want to develop the big sports industry. My support and confidence in the Li Ning Co have never decreased.

In fact, I think it's the right time for the two companies to achieve synergy. "

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How to make the two companies better, so that the interests of all shareholders can be improved is the most critical after integration, especially at present, Li Ning Co is undergoing changes, and now faces many challenges.

I believe that today's equity restructuring is conducive to the future development of the two enterprises.

Lining said so.

As the paction has not yet been completed, the Li Ning Co did not disclose the specific synergy measures, but Li Ning Co said it believed that the synergy effect of the two companies would be gradually reflected after the paction was completed.

Li Ning Co replied to reporters: "the diversified business platform of the extraordinary China will provide potential extensions for Li Ning Co's sports apparel business; and Li Ning Co's potential development prospects through deep changes in the ongoing enterprise will benefit the extraordinary China from shareholders' perspective."

Lining "left hand down right hand"?

From the extraordinary international stock price trend, Lining hopes that the desire of the extraordinary Chinese shareholders to benefit has been reached.

On the day of extraordinary China's acquisition of Lining's 25% stake, extraordinary shareholders in China gained a great deal of revenue.

The data showed that the share price of the special China skyrocketed 84.62%, to HK $0.12, a deal of HK $92 million 540 thousand.

This is due to the analysis of Guo Xinlin, a well-known American stock commentator, and Lining has injected equity into the extraordinary China, possibly to enhance the value of the extraordinary China and boost its stock price to the extraordinary China in the future.

It is also helpful.

However, some analysts believe that Lining's stock exchange is in the "left-handed right-handed".

According to public information, the actual beneficiary of VictoryMind is Lining himself, and the actual beneficiary of DragonCity is his brother Li Jin.

The main shareholders of the extraordinary China are Lining and Li Jin, who share 55.88% of China's two outstanding shares.

So, what is Lining's stock exchange? In Lining's personal reply to reporters, he said, "I hope this will straighten out the equity structure of the two companies in terms of resource sharing and synergy."

Denying entry into real estate

Because the main business of the extraordinary China contains sports real estate, some people think that Lining and the extraordinary China share the stock exchange to enter the real estate.

In this regard, Xiong Xiaokun, a consultant of light industry in China investment consultant, told reporters: "Lining's pactions with the extraordinary China, on the one hand, embodied Lining's strategic adjustment, and the company will pay more attention to sports related real estate business, so as to enhance the performance through the growth of real estate business; on the other hand, Lining can strengthen the complement of business and personnel's advantages through the cooperation with the extraordinary China, and realize the integration of sports industry chain."

Lining, director of the research department of Jin Li Feng securities, thinks that apart from the fact that he wants to develop the real estate business, he can not see other aspects of development at present, so we still need to wait and see.

The Li Ning Co denied that Lining would enter the real estate market.

It told reporters that Lining did not develop the idea of real estate.

"Lining's goal of focusing on sporting goods has not changed and the future will not change."