Li Ning leaps on privatization plan

Reuters

Chinese billionaire entrepreneur and Olympic champion Li Ning (2331) is said to be considering taking his namesake sportswear company private from the Hong Kong stock exchange, adding to a string of such potential deals in a faltering market.

Li is considering leading a consortium to buy out Li Ning which had a market capitalization of HK$52.85 billion as of Monday, said sources.

The company's annual results are scheduled to be announced on March 19.

Its stock jumped up as much as 20 percent yesterday to HK$24.55 following the news - the highest since November.

It closed at HK$22.1 - which is 8.07 percent higher than its previous close.

The company responded after the market close that it is not aware of any reasons that caused its "recent unusual movements" in price and trading volume or any information that must be disclosed to avoid a false market.

Li, 61, founded Li Ning a few years after retiring from a decorated gymnastics career in 1988.

Along with his family, he owns more than 10 percent of the company, its 2023 interim report showed.

A number of global and regional private equity firms, including TPG, PAG and Hillhouse Investment, have been tapped to see if they are interested in joining as an investor, sources said.

The discussions to take Li Ning private are still in the early stages, said sources.

The company made its Hong Kong debut in 2004.

Li feels his company is undervalued in Hong Kong and would target a hefty premium over its current share price in a potential buyout, according to sources.