Coolpoint Energy Will Buy Stake in Chinese Sportswear Manufacturer Li Ning
Coolpoint, to rename itself Viva China Holdings Ltd., signed an accord to provide services for endorsements, sponsorship and event management to Li Ning, according to a Hong Kong stock-exchange filing last night. Li Ning acknowledged the deals in a separate statement. Coolpoint supplies custom energy- saving equipment to companies in Hong Kong and China.
The purchase may constitute a reverse takeover by Li and be deemed a new listing under Hong Kong stock exchange rules, Coolpoint said.
Li Ning’s chairman, for whom the company is named, indirectly holds a 63 percent stake in Coolpoint, according to the filing. He was the gold-medal gymnast from the 1984 Los Angeles Olympics who lit the flame, Spiderman-style, at the 2008 Beijing Games.
Coolpoint said it hasn’t yet set the number of shares and the value of the convertible note it will issue to Li. It will issue 590 million shares to buy Viva China Sports Holding Ltd., owner of commercial-management rights for China’s national diving and gymnastic teams, the company said.
Coolpoint will buy an industrial park project and another piece of land in Shenyang, in northeast China, with the issue of 1 billion new shares, according to the statement.
The shares of Coolpoint, suspended since Aug. 26, will resume trading in Hong Kong today. The stock gained 9.9 percent to 78 Hong Kong cents on Aug. 25.
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.