Investors potentially interested in purchasing Reebok from Adidas

Reebok may find its way to a new owner soon, as a consortium of investors

from Hong Kong and Abu Dhabi are understood to be interested in acquiring the ill-fated sportswear brand from Adidas for 1.7 billion euros, or 1.35 billion pounds.

According to a report from the Wall Street Journal, Jynwel Capital, the investment branch owned by the wealthy Low Family from Asia, and funds associated with the government of Abu Dhabi, made an offer on Monday to purchase Reebok to Adidas's directors. Adidas declined to comment on the news.

The German sportswear retailer acquired Reebok in 2005 for 3.8 billion dollars, but since then has seen the label's sales decline to just 1.6 billion euros in 2013, accounting for a mere 11 percent of the groups total sales. However Adidas has been busy repositioning Reebok within the sportswear market and sales have been increasing over the past five quarters.

The rumored offer values the brand at 1.1 times last year's revenues and if sold for that amount could add a 33 percent premium to Adidas's overall valuation, whilst helping the German sportswear retailer shed its disappointing acquisition. The question remains if Adidas is interested in selling Reebok.

Following the news of a possible Reebok sale, shares in Adidas increased as much as 8.1 percent, before closing 3.7 percent higher in Frankfurt.