Li Ning, owner of the eponymous sportswear brand, announced Thursday a plan to make a foray into the real estate sector with his latest acquisition proposal.
Coolpoint Energy Limited, which his company gained control of in April with an investment of HK$400 million, has agreed to acquire the entire issued share capital of Bright Equal and Union Wealth for an aggregate consideration of HK$700 million, which will be settled with one billion new shares of Coolpoint's.
With the acquisition, the Coolpoint group will be entitled to the real estate development projects these two companies are involved in, including an industrial park coming on Development Zone Land in Shenyang, Liaoning province and the Eco-City project, also in Shenyang.
"Urbanization has gained momentum on the mainland. By participating in the Shenyang projects, we wish to be a part of this current drive," Li said at a media briefing on the recent acquisitions and transactions by the Coolpoint group and Li Ning Co.The industrial park will be co-developed with a Japanese company.
An estimated 40 billion yuan will be spent on building the 1,500-acre Eco-City project, which will take five to eight years to complete. The highlight of this community development project is its theme - sports and green.
"We are confident that these projects will fetch good returns. This is our first step in this segment. We'll see more in the future," Li said, indicating that the group is currently discussing some similar projects in Changchun and other cities across China.
The green-and-sports theme of the Eco-City Project, said Li, matches his business focuses. Now he expects that patented Coolpoint cooling system and sports-related facilities and programs will be introduced.
From an Olympic gold medalist to a business success, from sports-related business to real estate development, Li has always been treading the path of exploration and adventure.
Enormously to his credit, the home-spun Li Ning brand has stood up to the challenges from such mighty foreign rivals as Nike and Adidas in a competitive market in China. Now he is keen to play a bigger role on the global stage.
"We are looking to develop ourselves into a truly global sports brand. We have already made progress in opening the Southeast Asia market and will work more in that direction," said Li, who hopes that the overseas market will finally account for 20 percent of the company's total turnover.
China Daily
(HK Edition 09/03/2010 page2)
