On March 12, the Chinese listed company Guirenniao Co. Ltd officially announced that it proposes to acquire 100% equity of Will’s Gym by issuing shares and paying cash. The transaction value is initially confirmed to be 2.7 billion. After the completion of this transaction, Guirenniao Co. Ltd will own a 100% stake in the company which will become a wholly-owned subsidiary of Guirenniao Co. Ltd.

Guirenniao Co. Ltd was founded in 1987 and is one of the fastest growing Chinese sports brands and is now the leader in the Chinese sports shoes and apparel market. Will’s Gym is a leading service provider for fitness & recreation sports in China. Following the acquisition of Will’s Gym, Guirenniao’s business will expand into the sports fitness area.

Due to major assets restructuring, Guirenniao is not yet ready to resume on the stock market. The specific plan of this programme will be as follows: Guirenniao plans to issue at most 125 million shares to 10 or less specifically eligible investors and to raise a fund of at most 675 million Yuan. The issuing price is not yet fixed and the lock-up period is 12 months. The fund raised will pay for this transaction.

Source: Sports Money

Proofread by Sean O Diobhilin