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Media mogul Li Ruigang leads $510M investment in Meike Sports

By CMN, editing by Yutang Sports 17 Jul 2015

Chinese media mogul Li Ruigang, Tencent Holdings Limited, and TVB president Charles Chan Kwok Keung have agreed to inject HK$3.96 billion (US$510 million) in Hong Kong-listed sports shoe manufacturer Meike International Holdings Limited.

The deal, led by Li Ruigang, who is also the founder of China Media Capital, is believed to secure a shell company for the three parties to build a sports, entertainment and media empire.

The buyers are to subscribe 19.8 billion new shares issued by the Fujian province-based Meike at HK$0.2 per share, or a 77% discount to the company's last closing price before trading was suspended on July 7.

The new share issuance, which has a total value of HK$3.96 billion (US$510 million), compares with Meike's total share base of approximately 1.2 billion before the deal.

Li Ruigang is to subscribe 13.5 billion shares for an aggregate of HK$2.7 billion. Tencent is to purchase 5.3 billion shares for a total of HK$1.06 billion. Hong Kong businessman Charles Chan Kwok Keung is to buy one billion shares for HK$200 million in total.

The three parties will own around 94% of Meike on a diluted basis, with each owning 64.33%, 25.26%, and 4.77% respectively.

Tags: investment
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