China's Li Ning plans $1.4 bln share sale for international expansion

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.

The new shares will be issued at HK$87.50 apiece, or a 8.09% discount to Wednesday's close, with proceeds also to be used for investment in re-engineered infrastructure and supply chain systems, for brand building and working capital.

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Viva will buy the new shares on completion of the sale of the same amount of existing shares at the same price to third-party investors. Its stake in Li Ning will be diluted to 10.37% from 10.87% after the deal.