Jan 28, 2013
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Li Ning looking to raise 180 million euros

Jan 28, 2013

At the end of December, Li Ning announced a loss for the financial year 2012. The Chinese sportswear retailer has since been questioning its business model for its domestic market. In order to face up to problems in the company’s retail network, Li Ning is undertaking a “Channel Revival Plan”. As confirmed at the end of December, the plan will cost between 170 and 220 million euros and consists of reducing old inventory, improving product freshness and optimizing merchandising, coupled with network rationalization.

To support the Channel Revival Plan, Li Ning management has announced that it is looking to raise between 177 and 179 million euros via issuing convertible securities with a value of 3.50 Hong Kong dollars each. Each security can be converted into a share of the same price, which is 43% lower than the stock’s closing price before the announcement.

"We are at a critical point in executing our plans and transforming our business,” said Li Ning, Founder and Executive Chairman of the Group. “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.” Viva China, a Li Ning family company, and TPG investment funds will remain main shareholders in the group.

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