A venture called Viva China will buy 1.09 billion shares in Bossini, paying just HK$46.6 million ($6 million) for 66.6 per cent of Bossini’s issued capital. After the deal concludd, the buyer will be required under Hong Kong stock exchange rules to offer to buy out the remaining shareholders, which would lead to the company’s privatization. However, in a stock-exchange filing, Viva China said it intends to maintain the company’s listing.
The offer for Bossini’s shares represents a discount of 71 per cent to the 14.8 cents Bossini shares last traded at and an 87.39-per-cent discount to its December net asset value of $560.2 million. The offer reflects the deteriorating financial performance of Bossini Group and its widening loss in the latest financial years,” says the filing. A further loss is expected in the current trading year, with the company recording a $93 million deficit in the first half.
Viva China Group is principally engaged in sports competition, event production and facilities management, sports, sports-talent management and last year expanded into the development, design and sale of sports, health and leisure consumables. The group currently owns about 13.42 per cent of Li Ning Company, the sports apparel retail brand established by its namesake, a former Chinese Olympiad. Li Ning facilitated an introduction between Bossini and Viva China and is effectively underwriting the purchase through companies he controls.
