Li Ning Co Ltd announced that its non-wholly-owned subsidiary, Shanghai Double Happiness Co Ltd, will buy a 20% stake in Suzhou Double Happiness Guan Du Sports Equipment from Wujiang Daoboer Sports Equipment.
The purchase price paid was RMB 6.42 million. After the transaction, Shanghai Double Happiness will see its shareholding in Suzhou DHS increase to 75%, while Daoboer's stake in Suzhou DHS will be cut to 25%, Li Ning said in a statement.
Shanghai Double Happiness and Daoboer also plan to inject RMB 4.08 million and RMB 1.36 million respectively into Suzhou DHS, increasing the total registered capital of Suzhou DHS from RMB 9.56 million to RMB 15 million.
Suzhou DHS is mainly engaged in the manufacturing of table tennis equipment and related sporting goods and is the major manufacturing base of the table tennis equipment under the Double Happiness brand.
