Extraordinary China: Acquire The Shares Of Li Ning Company To Build A Great Sports Industry Empire

Li Ning Company, whose trading was suspended due to "major issues to be announced", revealed the answer: Li Ning himself sold 25% of the shares of Li Ning Company to his other affiliated company, Feifan China, at the helm. This is the second time that Extraordinary China proposed to buy the shares of Li Ning Company after it failed last year. This "left hand to right hand" transaction may indicate that the reform of Li Ning is accelerating.

　　 Transfer of shares of Li Ning Company

When Li Ning announced its suspension, the market speculated that it was related to the suspension of Fantasia China last week, which was confirmed. Li Ning Company and Fantasy China announced at the Hong Kong Stock Exchange that the two parties have signed a purchase and sale agreement, and Fantasy China will acquire 266 million shares of Li Ning Company, accounting for about 25.23% of the company's existing issued share capital. The sellers of the transaction are Victory Mind Assets Limited and DragonCityManagement Limited. These two companies currently hold 11.02% and 14.21% of the shares of Li Ning Company respectively. After the completion of the transaction, the two sellers will no longer hold any shares of Li Ning Company. Li Ning said that the transaction would not affect the company's daily operations and business strategies.

It is worth noting that this transaction is actually a "left hand over right hand" of the Li Ning family. The actual beneficiary of VictoryMind is Li Ning himself, and the actual beneficiary of DragonCity is his brother Li Jin. The major shareholders of Fantasia China are Li Ning and Li Jin, who hold 55.88% of the shares of Fantasia China.

The total price of the acquisition of Li Ning shares by Fantasy China is about 1.359 billion yuan. It is estimated that after the completion of the transaction, the shareholding ratio of Li Ning and his family in Fantasia China will increase from the current 55.88% to about 70%; Extraordinary China has become the largest shareholder of Li Ning Company, and Li Ning himself will no longer directly hold the equity of Li Ning Company.

Influenced by this news, the depressed Fantasia China stock resumed trading yesterday and soared, rising 84.62% to 0.12 Hong Kong dollars. Li Ning shares closed down 4.76% at HK $4.6 on the 17th.

　　 The last acquisition was rejected

In fact, Li Ning The cooperation between the company and Fantasia China can be traced back to two years ago. In April 2010, Li Ning Brothers controlled Joy Energy Saving (later renamed as Fantasy China), which was listed in Hong Kong, by subscribing for preferred shares and convertible bonds at an ultra low price at a price of about 700 million yuan. Joy Energy Saving has become another operation platform of Li Ning in the capital market besides Li Ning.

In August 2010, Fantasy China signed a memorandum with Li Ning, the major shareholder, to acquire all about 30% of its shares in Li Ning Company. Later, it raised about 1.2 billion yuan through two rights issues, and announced the acquisition of Shenyang Industrial Park and Eco City projects. It plans to enter the real estate industry and combine sports with real estate. However, this has caused criticism of "not doing business". Subsequently, the acquisition plan was rejected by the Hong Kong Stock Exchange in December of the same year as an anti acquisition (referring to the actions taken by the management of the target company to prevent or frustrate the acquirer's acquisition of the company in order to prevent the transfer of the company's control).

One year later today, Extraordinary China again proposed to purchase the shares of Li Ning Company. A person familiar with the transaction told reporters that the proportion of shares of Li Ning Company acquired by Fantasy China this time was 25.23%, lower than 30% of the last time; The acquisition method of this time is also different from that of the last time. The last time, it was a share exchange transaction, and the procedures were cumbersome. "I believe this transaction will not be ruled as anti acquisition again."

As a minority shareholder of Fantasia China and Li Ning Company, the person also told the reporter that two years ago, Fantasia China did not acquire the stock rights of Li Ning Company in this way today because the stock price of Li Ning Company was more than 20 Hong Kong dollars at that time. It was difficult to buy if you wanted to buy it. At that time, if you purchased the stock rights, the funds used were quite large.

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　　 Build a great sports industry empire

The largest shareholder of Fantastic China and Li Ning is Li Ning. Why did he replace the shares in his left and right pockets? In this regard, an insider who once worked with Li Ning told reporters yesterday that this transaction has added the heaviest weight to the business basket of Extraordinary China; For Li Ning himself, it will bring him closer to his ideal of expanding the concept of sports.

The announcement shows that Extraordinary China is mainly engaged in sports talent management and event, event production and management, sports theme community development, and is committed to entering other sports related businesses. The above personage said that Extraordinary China is a company engaged in sports marketing and athlete sponsorship. Its business model is to provide services, while Li Ning is an industrial company. Although Li Ning's performance has declined, it is still a sports goods brand with a large local share after all. The acquisition of shares of Li Ning Company by Fantasy China is equivalent to improving the performance level of the company; At the same time, Li Ning can also make use of the expertise and marketing resources of Fantastic China, which will help Li Ning implement its marketing strategy.

"Li Ning hopes to do something in a broader field, while Li Ning Company is engaged in the sales of sports products, and the single business makes it impossible for him to develop his imagination on this platform." The source told the reporter that in order to build a larger sports empire, Li Ning and his brother reorganized Joy Energy Conservation two years ago, although at present, Extraordinary China has been in Nanning, Guangxi Henan Anyang has built a sports industrial park, but the controlling right of Li Ning, which they most wanted, has not arrived yet. This is also the reason why Extraordinary China launched the acquisition again. "I think this is closer to Li Ning's sports ideal". H&M brand will launch a luxury series called&Other Stories next spring clothing , only women's clothing is available. Of this series designer Mainly from Paris and Stockholm, it aims to launch high-end series that pay attention to details and quality, but also at affordable prices Clothes & Accessories 。

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