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China’s Li Ning plans $1.4 billion share sale for international expansion -Breaking

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© Reuters. FILE PHOTO – People pass a Li Ning store in Beijing, China on April 15, 2021. Picture taken April 15, 2021. REUTERS/Tingshu Wang

HONG KONG (Reuters), a Chinese sportswear manufacturer Li Ning Co Ltd stated on Thursday that they would be selling HK$10.5billion worth of shares ($1.35billion) to fund international expansion.

It stated in a filing submitted to Hong Kong’s bourse that the Beijing-based company will sell 120 million shares (or 4.59%) of its enlarged capital to its largest shareholder Viva China Holdings Ltd.

New shares will be sold at HK$87.50 per piece, which is a 8.09% discount on Wednesday’s closing. Proceeds can also be used to invest in reengineered infrastructure, supply chain systems and brand building capital.

Viva will acquire the new shares upon completion of the sale at the same price of all existing shares to third party investors. After the transaction, its stake in Li Ning is reduced to 10.37%.

($1 = 7.7779 Hong Kong dollars)

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