Business Intelligence on Retailing, Franchising, and Consumerism in China


Bain Capital To Acquire 18% Stake In Gome For USD400 Million

It is reported that U.S. private equity firm Bain Capital is to buy a 18% stake in China's electronic retail giant Gome for USD400 million.

In addition, Bain Capital will acquire 12% of Gome's HKD4.6 billion convertible bonds at an annual interest rate of 5%. These bonds were issued by Gome in May 2007 and will be due in 2010. On the completion of these transactions, Bain Capital will gain over 20% of the equity in Gome, however insiders say that Huang Guangyu — the founder of Gome who is currently under investigation for financial crimes — will still be the major shareholder of Gome.

According to a representative from Gome, the two parties are finalizing the details of the investment and all the relevant information will be published through Hong Kong Exchanges and Clearing Limited.

Rumor says that Chen Xiao, the current chairman of Gome, is considering selling his 7.28% stake in Gome, but this has been denied by the company.






Be the first to comment on "Bain Capital To Acquire 18% Stake In Gome For USD400 Million"

Leave a comment

Your email address will not be published.


*




  Other China News

ChinaTechNews.com:


GreenChinaTech:

Chinese Electric Bus Manufacturer Lands USA Deal

American Electric Car Manufacturer To Build In China

U.S. Clean Water Company Makes Chinese Inroads

GE Will Promote Wind Power Through New Chinese Education Center


ChinaSourcingNews.com:

JD To Build Global Logistics Headquarters In Xi'an

Wumart, AGS Sign Agreement For Seafood Direct Procurement

India Gains Second Factory From China's Xiaomi

85% of Indian Staff To Lose Jobs At China's LeEco