Li Ning to fund $241m by convertible securities

2013-01-28 08:00:47 GMT2013-01-28 16:00:47(Beijing Time)  China Daily

Chinese sportswear giant Li-Ning Co Ltd plans to issue convertible securities to raise up to 1.87 billion Hong Kong dollars ($241 million) to optimize its branding and capital structure.

The company plans to raise about HK$1,847.8 million to HK$1,868.6 million by an Open Offer of Convertible Securities, it said in a statement filed with the Hong Kong Stock Exchange.

"The total gross proceeds from the Open Offer will be used by the group to fund the overall execution of the transformation plan, provide general working capital to the group and to optimize its capital structure," said the company.

Industry experts said Li-Ning has been suffering from inventory problems due to over-expansion in China's sporting goods industry, which is hitting the company's sales and profitability.

"The group's debt level may begin to impact management's ability to make optimal decisions including investments into the group's operations," the company said in the statement.

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