China’s Lander Sports Development scraps plan to buy stake in Premier League club Southampton
Stadium builder blames new restrictions on overseas investments for pulling out of deal
China stadium builder Lander Sports Development said on Monday it had scrapped plans to buy a stake in English Premier League soccer club Southampton, blaming unspecified policy changes amid a crackdown by Beijing on overseas investments.
The acquisition would have made Southampton, currently ninth in the Premier League, the latest top-flight English club to gain Chinese investment.
Lander Sports implied it was having difficulties completing necessary procedures for the investments amid asset restructuring at the company.
“Based on the principle of prudence, the company has decided to terminate this major asset restructuring in order to maintain normal development of the firm’s business and safeguard the interest of all investors,” it said in a statement.
Lander Sports’ shares, which had been suspended since October as talks with Southampton were under way, resumed trading on Monday and tumbled the maximum 10 per cent allowed by China stock regulators.
Based in the eastern province of Zhejiang, the company said it had signed an agreement in November with club owner Katharina Liebherr for a stake in St Mary’s Football Group, Southampton FC’s holding company.