Gome Electrical Appliances Holding Ltd., has achieve an agreement with five shareholders, including Chen Xiao, founder of Yongle and the current president of Gome, to acquire the remaining 10% shares of Yongle (China) Electronics Retail Co.
This makes Yongle a wholly-owned subsidiary of Gome.
In July 2006, Gome acquired the Hong Kong listed China Paradise Electronics Retail Ltd. for over CNY5.3 billion. China Paradise Electronics Retail Ltd held a 90% stake of Yongle (China) Electronics Retail Co. and the other 10% was owned by five shareholders, including Chen. Following the acquisition of the 10% stake, Gome will wholly own Yongle (China) Electronics Retail Co.
According to reports from Gome, the company is signing the agreement with the five shareholders through Beijing Gome Hengxin Trading Co., Ltd., a wholly-owned subsidiary of Gome. Gome will pay CNY811 million for the 10% stake,and Chen, who holds the most shares will gain CNY588 million in this transaction.
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