Lining Curve Injection, Stock Price Rise

It has been reported that Lining, a gymnast, was not only a gymnast but also used to be very competitive.

In a bid to issue "doll paper" curve injection, the stock price of China (8032) increased by 84.615% yesterday, and its market value increased to 2 billion 290 million yuan, an increase of 1 billion 50 million yuan.

Although Li Ning Co (2331) first increased and then returned, it closed down 4.6 yuan and fell 4.762%, but the market value was only reduced by 242 million yuan to 4 billion 857 million yuan.

Two, the company "left handed to the right hand" and "no profit" increased by 800 million yuan.

Li Ning Co and extraordinary China issued a joint announcement yesterday, referring to an agreement signed last Friday (12).

China has bought 266 million shares of Li Ning Co from major shareholders Lining and Li Jin, accounting for about 25.23% of the issued share capital, with a total price of about 1 billion 359 million yuan.

Although many analysts doubt that this is the "Prince of gymnastics" playing with financial skills, it does not help the company's prospects, but the extraordinary China is still soaring.

Lining and others increased their holdings to 70%

According to the announcement, the acquisition will be paid in two ways. First, the share price will be paid at 1 billion 780 million shares after the completion of the "five in one", and the price will be 0.325 yuan per share. Secondly, through the issuance of the total subordinated convertible bonds with a total principal amount of 780 million yuan, the initial share price will be calculated at 0.325 yuan per share after "five in one".

After the completion of the paction, Lining himself and his family will substantially increase their rights from the current 55.88% outstanding China to about 70%, but the conversion of their permanent subordinated convertible bonds will be limited by maintaining the statutory requirements that meet the 25% public shareholding.

News that China's stock price rose sharply yesterday after the opening of the market, the highest seen 0.153 yuan, or 135%, in the afternoon fell, closing the market is still up 84.615% to close at 0.12 yuan.

The Li Ning Co also increased 1.65% to $4.91, but after that, it closed 4.6 yuan and fell 4.762%.

Building integrated platform has synergistic effect

For this acquisition, the "gymnastic Prince" sang well in the press release, referring to China.

Development is still in its infancy, but it is believed that the sports industry will have great potential in the long run.

It is also emphasized that this strategic initiative can not only enhance the strength of the extraordinary China, but also bring more synergy to both sides, so that we can more effectively grasp the business opportunities that the market is booming and realize the vision of promoting the healthy life of Chinese urban residents in the long run.

Extraordinary China also issued a supplementary statement to the media after the closing of the market. It said that the acquisition rights were only paid at the issue price shares and the permanent subordinated convertible bonds, not involving any cash, and there was no repayment clause for the bonds. Therefore, "it does not constitute Mr. Lining's reduction of Li Ning Co share or cash in cash. It is purely a consideration of building an integrated platform, hoping to strengthen the business synergy between the extraordinary China and Li Ning Co". Besides, Lining himself is also hoping to realize his vision of promoting healthy life of the Chinese urban residents before he can dilute his interests to the extraordinary minority shareholders in China.

The group also stressed that it believed that the paction would not touch on the anti takeover regulations and was confident of the eventual completion of the acquisition.

Analysis: "left handed to the right hand" is difficult to win

However, market participants have different views on this.

Huang Minshuo, director of Hong Hong securities and asset management, told this newspaper that whether the Li Ning Co or the extraordinary China, this acquisition has limited help to its business prospects and can not help enhance the brand effect. In fact, Lining's assets "left hand to the right hand" is not likely to achieve the "win-win" effect it hopes.

He believes that at this stage, the stock of two companies is not worth pursuing, because at present, the sports industry in the mainland is very competitive, believing that the performance of Li Ning Co is difficult to improve in one or two years.

In September 2010,

Announced that the "change the standard" approach to the extraordinary predecessor of China's extraordinary energy saving, from the latter through the issuance of new shares to Lining acquired 30.9% stake in Li Ning Co, disguised as a major shareholder of Li Ning Co.

However, the Hong Kong Stock Exchange's gem listing committee ruled it as "anti takeover", resulting in a planned abortion.

Guo Jiayao, vice president of Haitong international global investment strategy, believes that because the proportion of shares involved in the acquisition is lower than last time, and Lining's valuation is no longer the same, it is believed that the chances of success are higher.