Chinese entrepreneur and former Olympic champion Li Ning is reportedly contemplating the privatization of his sportswear firm listed on the Hong Kong stock exchange, according to sources familiar with the matter. The move would add to a series of similar potential deals amid a challenging market landscape.
Li founded Li Ning Co a few years after retiring from gymnastics in 1988. He is said to be exploring the possibility of leading a consortium to acquire the company, which currently boasts a market capitalization of HK$52.85 billion (€6.2 billion). Alongside his family, Li owns more than 10 percent of the company, as per its 2023 interim report.
According to two sources, multiple global and regional private equity firms, including TPG, PAG and Hillhouse Investment, have been approached to gauge their interest in participating as investors.
While discussions regarding the potential privatization are still in their early stages and no concrete details have been decided upon, Li Ning Co.’s shares surged up to 20 percent to HK$24.55 (€2.88) following the Reuters report on Tuesday, marking the highest level since November.
No immediate plans for relisting
Li Ning Co., headquartered in Beijing, responded to Reuters stating that it had not received any information regarding the matter as of yet. Li himself did not immediately respond to a request for comment sent through the company. TPG, PAG and Hillhouse declined to provide any comments on the matter.
The stock markets in Hong Kong and mainland China have faced significant downturns over the past year, attributed to China’s economic deceleration, limited stimulus measures, and geopolitical tensions. Amid concerns of undervaluation in the Hong Kong market, Li Ning is reportedly eyeing a substantial premium over its current share price in a potential buyout, according to two of the sources.
However, there are no immediate plans to relist the company on the mainland, one of the sources added.
