Anta Sports Products:New share issuance of 6%-7%to support M&A capacity

On March 22, Anta Sports Products (2020.HK) announced it had entered into anagreement for the placement of an aggregate of 175mn existing shares by the majorshareholder (controlled by Chairman Ting) followed up with issuance of 175mn newshares. The placing shares would represent 6.99% of total shares currently in issuewith a placing price of HK$21.67 (7.98% discount to Mar 21 closing price ofHK$23.55). The new shares would represent 6.99%/6.54% of the total number ofshares before/after the issuance with a subscription price same as the placingprice; the issuance is subject to AGM approval in April. The net proceeds will totalHK$3,787mn (or RMB3,364mn) and the company said it plans to use this for M&Aand general working capital of the Group. After the planned placement and newshare subscription, the major shareholder’s stake would be reduced from 65.93% to61.62%.