Hong Kong shares in ANTA Sports Products (HKEX: 02020; OTC: ANPDF) plummeted 8% at the close of trading Wednesday after announcing its controlling stakeholder sold about 3% of the equity in the company for HK$11.5 billion ($1.5 billion) at a discount.
Parent company ANTA International Group Holdings Ltd., has agreed to sell 88 million shares in the sportswear unit priced at HK$131.48 each, according to a statement posted, as cited by Yicai Global. That represents an 8% discount from Tuesday’s close of HK$142.20 per share.
Under the share sale, the parent signed agreements with J.P. Morgan Securities Asia Pacific, Morgan Stanley & Co. International, and Merrill Lynch Asia Pacific.
Indirectly, the parent holds a 10% stake in ANTA Sports.
According to ANTA Sports, the deal isn’t expected to have any major implications on its daily operations or lead to management changes.
In the U.S., ANTA Sports last made a trade at $17 per share earlier this morning, 4% lower from Tuesday’s close. So far, the stock has only traded 157 shares on Wednesday; on average it trades about 5,600 shares a day.
Sometimes referred to as the Nike (NYSE: NIKE) of China, ANTA Sports will sponsor the Chinese Olympic team and the Beijing 2022 games. It also has an endorsement deal with NBA star Klay Thompson. In the fall, Anta Sports launched its latest signature brand sneaker of Thompson, the KT6.
This year, ANTA Sports has experienced hot demand for its products. In the first quarter, the company reported that its sales for Anta-branded products leaped 45% year-over-year.
ANTA Sports’ Hong Shares have risen 7% year-to-date.