Home / Knowledge / News / Apparel/Garments / Li Ning to raise HK$1.8bn via open offer
Li Ning to raise HK$1.8bn via open offer
28
Jan '13
Li Ning Company Limited, one of the leading sports brand companies in China, announced that its Board of Directors (the "Board") proposes to raise approximately HK$1,847.8 million to HK$1,868.6 million by way of an Open Offer of Convertible Securities. The total gross proceeds from the Open Offer will be used by the Group to fund overall execution of the Transformation Plan, provide general working capital to the Group and to optimize its capital structure.

Under the Open Offer, each Convertible Security in the principal amount of HK$3.50 (convertible into one Share at a conversion price of HK$3.50each) is offered to qualifying shareholders for every two existing Shares. The conversion price of HK$3.50represents a 43.64% discount to the Group's closing share price on the last trading day. Such Convertible Securities are readily convertible into common shares of the Group, and will be treated as equity from an accounting perspective.

Viva China Holdings Ltd TPG and GIC, who are the Group's existing shareholders and/or bondholders, have committed to subscribe to the Convertible Securities based on their assured entitlements in the Open Offer.In addition,Viva China and TPG will underwrite 60% and 40%, respectively, of all the Convertible Securities not taken up by other shareholders.

Mr. Li Ning, Founder and Executive Chairman of the Group, commented, "We are at a critical point in executing our plans and transforming our business. The additional capital to be raised through the Open Offer and continued support from its key stakeholders will ensure a stable platform while we work to restore the Group to sustainable growth and profitability in the long-term and step into a new phase of our development.

The key investors' increased commitment and contribution to the Group's future growth is a boost of confidence for the Group as it pioneers new sports marketing-driven and retail-oriented business model at this very challenging time for the sporting goods industry."

Over-expansion in China's sporting goods industry has caused the building up of inventory for channel partners, which has adversely affected store productivity and profitability and led to deteriorating financial positions. Over the past two years, problems in the Group's sales channels have started to gradually impact the Group's financial position. Furthermore, the Group's debt level may begin to impact management's ability to make optimal decisions including investments into the Group's operations.

When the situation deteriorated further in 2012, management acted quickly by implementing a comprehensive Transformation Plan in July 2012. As part of the Transformation Plan, the Group has introduced strong additions to the management team who have in turn put in place a new vision for the Group and implemented initiatives on all fronts including marketing, product/merchandising, sales channels, cost savings and cash flow management, and building the foundation of an industry-leading platform.


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X