On Wall Street Journal’s report last Sunday, the publication stated that a group of investors, including Jynwel Capital and funds which is affiliated with Abu Dhabi’s government is initiating a bid in purchasing Reebok for almost $2.2 B from Adidas AG.
The Wall Street Journal reported details that came from unnamed sources that are closely involved in the matter that Jynwel Capital is a private equity advisory and investment firm that is based in Hong Kong, which is operated by Jho Low, and Abu Dhabi’s government-affiliated funds are planning to make their latest offer imminent by writing a letter addressed to the directors of Adidas.
The Wall Street Journal also reported that the said interested investors are obviously expected to push that it would be better for Reebok if it is managed independently.
The spokespeople of Adidas didn’t immediately reply when emailed for a comment. A company spokesperson just stated that they are continually evaluating each unique investment opportunities from all over the world, but still don’t have a comment regarding recent rumors and speculations.
The Wall Street Journal report cited details from unnamed sources that the group of investors believes that Reebok would benefit significantly from new ownership and management that will improve the focus on Reebok’s overall business improvement in the U.S. without the scrutiny of other public shareholders.
The investors still wish to maintain Reebok’s existing strategic path and also keeping top executives. The group also wishes to provide Reebok with more financing that will be used for marketing and also store rollouts.
The report also stated that Reebok management was first approached by the said group of investors late last year and the idea of establishing the said joint venture was brought up. The main aim is to release high-end fitness products and also build multiple stores in the US and also internationally.