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Li Ning transfers stake to sister firm

Beijing-based sportswear maker Li Ning (2311.HKG) is transferring 25% of its stake for HK$1.36 billion (US$175 million) to Viva China Holdings, a sports talent firm controlled by Olympic gymnast Li Ning, the founder of the sportswear company, The Wall Street Journal reported. Viva China will take over the stake from Victory Mind Assets and Dragon City Management, two investment holding companies controlled by Li Ning and his brother Li Chun, according to a filing with the Hong Kong stock exchange. The transfer follows a series of senior management changes over the past months at the Chinese sports shoe and apparel giant. The company announced Friday that its chief financial officier resigned, after replacing its chief executive in July and naming a senior excutive from US buyout firm TPG Group to deal with the transition. Li Ning was plagued by excess inventory after the 2008 Beijing Olympics and now faces fierce competition in China’s apparel market.

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