NEWS

China's Peak Sport controlling shareholder plans to take firm private, shares jump

Thursday, May 26, 2016

Chinese sports brand Peak Sport Products Co Ltd said its controlling shareholder, investment firm Ever Sound Development Ltd, is considering plans to take the company private and delist from the Hong Kong stock exchange.

The news, announced in a filing late on Tuesday, sent Peak Sport sharply higher on Wednesday morning. The stock jumped 18 percent in early trading, and at 0150 GMT was trading at HK$2.11, up 9.9 percent.

Ever Sound Development owns 61.19 percent of Peak Sport, according to the latter's filing. In the Tuesday filing to the Hong Kong bourse, Peak Sport chairman Xu Jingnan said "preliminary consideration is still in progress" on the firm being taken private, without disclosing any reason for the move nor potential financial terms.

Ever Sound was not immediately available for comment.

Peak Sport, a smaller rival to ANTA Sports Products Ltd and Li Ning Co Ltd, saw its profit rise 22 percent in 2015, but expects a challenging 2016 amid slow consumer spending and fierce competition.

 

Source : reuters.com