An investment company controlled by China sportswear billionaire Ding Shui Po plans to lower its stake in his Hong Kong-listed flagship Xtep International Holdings, according to a filing today.
Group Success Investments plans to complete the sale of 80 million existing shares at a price of HK$12.70 per by July 26, raising HK$1.02 billion, or $131 million, the Hong Kong stock filing said.
Group Success Investments’ stake in Xtep will fall to 46.7% from the previous 49.7%. Ding owns 67% of Group Success; he also holds another 2.3% stake directly.
Xtep, a rival of Nike, Li Ning and Anta founded in China by Ding in 1999, started out as a manufacturer for international brands before finding success with its own Xtep brand. Though it has thrived over the years on growth in China consumer income, the country’s expansion slowed to only 0.4% in the second quarter amid Covid lockdowns.
Xtep’s board said the disposal isn’t expected to have any significant impact on its day-today operations or lead to changes to its key management personnel. Ding and two other family shareholders are “committed to the company and have confirmed their intention to remain as substantial shareholders of the company for the foreseeable future,” according to the
Ding is worth $1.8 billion on the Forbes Real-Time Billionaires List today.
The company’s Hong Kong-traded shares have increased by 8.6% in the past year. Nike has dropped nearly 32%, Li Ning has lost 27% and Anta has plunged 48% during the same period.
See related posts: