Anta Sports Products Ltd. slid Wednesday after the entry of a sizable stake in Hong Kong’s clearing system stoked speculation of a sale by a key shareholder.
(Bloomberg) — Anta Sports Products Ltd. slid Wednesday after the entry of a sizable stake in Hong Kong’s clearing system stoked speculation of a sale by a key shareholder.
Shares of the Chinese sportswear maker slumped 3.6% in Hong Kong to its lowest since Jan. 10. The move came after exchange data as of Tuesday showed a 3.11% stake, or 84.5 million shares worth $1.2 billion, entered the Central Clearing and Settlement System.
The entry revived memories of an episode last July where a stake matching the size of Berkshire Hathaway Inc.’s position in BYD Co. appeared in the system, before the investment firm eventually confirmed the sale. Anta’s clarification on the move came after Hong Kong markets closed, as a spokesperson said it’s a “follow-up procedure” of the controlling shareholder’s earlier commitment to donate shares for the establishment of a foundation.
There is no implication of any reduction in share holdings, the spokesperson said.
The stock also tumbled on Dec. 20, 2021 when Anta’s majority shareholder announced it would donate 10 billion yuan ($1.5 billion) of cash and shares to establish a charity fund, potentially by means of a transfer of Anta’s shares.
UBS Securities Hong Kong Ltd. held 7.75% of Anta’s total issued shares, warrants and units as of Feb. 14, an increase from 4.66% as of Feb. 11, exchange data showed. Anta International Group Holdings Ltd. is Anta’s largest shareholder with a 44.26% stake, according to data compiled by Bloomberg.
“We continue to believe that this is its majority shareholders’ de facto disposal of shares to an entity that would possibly sell down Anta shares in the open market in future,” Citigroup Inc. analysts including Xiaopo Wei wrote in a note. “We expect negative sentiments on Anta’s share price before its results announcement on March 21.”
(Updates with Anta response, prices as of market close)
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