Coolpoint Energy, an environmental technology provider in Hong Kong, has entered an agreement to buy a 30.9 percent stake of Li Ning Company. Coolpoint, which will change its name to Viva China Holdings, will provide services related to brand or product endorsement, sponsorship, and event management. The deal is contingent upon Coolpoint shareholders’ approval before Nov. 15. If approved, the agreement will be in effect until Dec. 31, 2012.
Li Ning, the former Olympic athlete who is the controlling shareholder of the sports apparel company, indirectly holds 63.2 percent of the listed shares of Coolpoint. Since he has a material interest in the transaction, he abstained from voting on the board’s resolution approving the agreement.
Until September 2009, Coolpoint was known as GreaterChina Technology Group. The names of the three companies selling Li Ning shares are Victory Mind Assets, Dragon City and Alpha Talent, all of which have some ties to the former Olympic champion.
Coolpoint will diversify into sports-related businesses, though not apparel, footwear or equipment - it plans to work in event and talent management and marketing. Li Ning will benefit by having better access to these services, as well as from synergies with Coolpoint’s other sports resources it may develop.
Right now, Coolpoint and its subsidiaries mainly work in Chinese herbal products, manufacture and sales of Western medicine, IT consulting, and manufacture and trading of new energy source air-conditioners.
