Viva China, the largest shareholder of Li-Ning, said acquiring the brand at a discount provides a good investment opportunity.
Chinese sportswear group Li Ning Co Ltd said on Thursday it planned to sell HK$10.5 billion ($1.35 billion) worth of new shares to raise capital for international expansion and for investment in newly launched product categories. The Beijing-based company plans to sell 120 million new shares, or 4.59% of the enlarged share capital, to its major shareholder Viva China Holdings Ltd, it said in a filing to the Hong Kong bourse. Its stake in Li Ning will be diluted to 10.37% from 10.87% after the deal.
Li Ning Co. (LNNGY) could be a great choice for investors looking to make a profit from fundamentally strong stocks that are currently on the move. It is one of the several stocks that made it through our "Recent Price Strength" screen.