Anta Sports plans $488m share sale to fund acquisition

ANTA Sports Products Ltd said on Wednesday it plans to raise HK$3.79 billion (401 million pounds) in a share sale to fund tie-ups and acquisitions of international sportswear brands.

The China home-grown sports brand said it would sell 175 million new shares to major shareholders at HK$21.67 apiece, representing a 7.98 percent discount to the previous close. Proceeds also would be used as general working capital.

The major shareholders, comprising Anda Holdings International Ltd, Anda Investments Capital Ltd and Anta International Group Holdings Ltd would subscribe for the new shares on completion of placing the same amount of existing shares at the same price to third-party investors.

The aggregate holding of the major shareholders would be reduced to 61.62 percent following the deal, from 65.93 percent.

Last month, China's biggest sportswear retailer by market value saw its 2016 net profit jump 17 percent to a record high, buoyed by growth in children's product lines and a strong e-commerce business as the country's sports sector continued to strengthen.