Investor group in talks to acquire Reebok

New York, Oct. 21: An investor group that includes Jynwel Capital and funds affiliated with the Abu Dhabi government is launching a bid to buy Reebok from Adidas AG for about $ 2.2 billion, the Wall Street Journal ( WSY) reported Sun- day.

Jynwel Capital, a Hong Kong- based private equity investment and advisory firm run by Jho Low, and the Abu Dhabi government- affiliated funds planned to make the offer imminently in a letter to Adidas directors, WSY reported, citing unnamed sou- rces close to the matter.

The investors are expected to argue that Reebok would do better if it were managed indepen- dently.

Adidas spokespeople did not immediately return emailed requests for comment.

A Jynwel Capital spokesperson said, “We continually evaluate unique investment opportunities globally but we don’t comment on rum- ors or speculation."

The investors believe Reebok would benefit from management and ownership that would be better able to focus on improving Reebok’s business in the US outside the scrutiny of public shareholders, but want to maintain Reebok’s current strategic path and keep its top executives, sources said.

The group first approached Reebok’s management late last year about establishing a joint venture to roll out high- end fitness brands and build dozens of stores in the US and internationally. The investor group also wants to give Reebok more financing for marketing and store rollouts.