China’s Li Ning to sell stake in Double Happiness
Chinese sportswear manufacturer Li Ning, announced it would sell 10 per cent of its stake in Shanghai Double Happiness for 125 million yuan to Gem-listed Viva China.
Li Ning expects the transaction would bring an after-tax net gain in excess of 200 million yuan, and the company will hold 47.5 per cent stake in Double Happiness after the transaction.
Double Happiness is China’s most famous Ping Pong paddle manufacturer.
Viva China, a sports event management company also under owner Li Ning family’s control, currently has a 25 per cent equity interest in Li Ning.
Goldman Sachs lowed its target price of Li Ning last week to HK$4.7 due to a slowdown of sales in the 3rd quarter.