China’s GOME Retail plans $579m share sale to repay debt, expand business

REUTERS/Jason Lee

China’s home appliances retailer GOME Retail Holdings Ltd said on Tuesday that it planned to sell HK$4.49 billion ($579 million) worth of new shares to repay debt and expand its online and offline dual-platform business.

The Beijing-based retail chain operator said it planned to sell 2.28 billion new shares to a unit owned by its controlling shareholder, Wong Kwong Yu, at HK$1.97 apiece, or a 15.09% discount to Monday’s close of HK$2.32.

The unit will subscribe for the new shares on completion of sales of the same amount of existing shares at the same price to third party investors, it said in a filing to the Hong Kong bourse.

Wong’s stake in the Hong Kong-listed company will be reduced to 45.47% following the deal, from the current 50.28%.

The share sale came days after GOME, which operates more than 2,800 physical stores in mainland China, said its sales revenue for 2020 was expected to drop by 23%-29% from a year ago amid the COVID-19 pandemic.

It expected to post a 6.5 billion-7.2 billion yuan net loss, compared with 2.59 billion yuan loss in 2019, it said.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.