Gome to regain 23.5% stake in Bain

Every reporter Yu Wei from Beijing yesterday, Gome successfully introduced investors-International private equity fund Bain Investment under the baincapitalglorylimited. Gome will issue a new seven-year convertible bond with a total cost of HK $1.804 billion to Bain investment. Suning recently issued a notice, this year, the plan for targeted additional 200 million shares to raise about 2.8 billion yuan of funds.　　A "circle money War" is China's largest two home appliance chain of suning appliances and gome between the battle, or will determine their future years in China's home appliance chain layout pattern.　　Since the ex-Huang, Gome (00493,HK) 's first financing negotiations for July years, yesterday finally settled. Yesterday afternoon, Beijing Gioyang like Fire, located in Chaoyang District, Beijing, 18 floors of the headquarters of the 1th conference room has the same temperature. Dozens of media reporters from Beijing, Guangzhou and Shanghai have witnessed the signing of a deal with Gome's board chairman, Chen Xiao, who announced Gome's successful introduction of the investor, baincapitalglorylimited of the International Private equity fund Bain Investment.　　Gome shares will be a duplicate today.　　At the same time, Gome announcement also disclosed that Gome Electric Board confirmed that the company's assets and funds are not diverted or occupied by the problem, the company's financial health.　　Can Bane become the second largest shareholder? According to the agreement, Bain investment will eventually hold the 9.8%~23.5% of Gome's expanded issued share capital (assuming that all new convertible bonds are fully diluted on the basis of full dilution, depending on the current shareholders ' participation in the stock supply). Bain Investment will nominate three non-executive board seats.　　After the ex-Huang, Gome only Chen Xiao one person to 7% of the equity to enter the board. From this can be seen, Huang Guangyu couple Gome's first major shareholder status unshakable, but Bain can become Gome's second largest shareholder is still a question. Before that, Mr Huang's couple owned 45 of listed companies.　　300 million shares, accounting for more than 27%, Bain's shares broke the original balance, the proportion of Huang Guangyu couple fell. Under the investment agreement, Gome will issue a new seven-year convertible bond with a total value of HK $1.804 billion to Bain investment, with an annual rate of 5% per cent, with an initial conversion price of HK $1.18, and a 1.12 Hong Kong dollar premium of 5.4% per share for the final closing price before the suspension. If all into the company stock, its size is equivalent to 12.8% of Gome's issued share capital.　　If the public offering is completed, the conversion price will be adjusted to HK $1.108 per share. In addition, the company will launch a public offering of 18 shares for each 100 shares of HK $0.672 per share, equivalent to 60% of HK $1.12 per share of the closing price before the suspension.　　The financing package will bring gome not less than HK $3.236 billion. Chen said the IPO plan will be determined by July 31. The new shares are Gome's original shareholders for shares, Bain is only the underwriters, the original shareholders to subscribe to the new shares are not full, the rest is Bain call, the original shareholders did not subscribe to thePart of the stake is all subscribed by Bain.　　As a result, Bain master the 23.5% of Gome's equity, become the second largest shareholder, if the original shareholders subscribe to all new shares, Bain's second largest shareholder status will not be guaranteed. Shipeng, Chief division of the management consultancy, told the Daily economic news last night that if Bain were to hold only 9.8% per cent of Gome's shares, it would probably hold a maximum of 3 years and throw it out at another peak of the Chinese economy in 3 years ' time.　　But if Bain holds a 23.5% stake, it has an integrated discourse on Gome, which is fundamentally different in nature.　　But Bain's managing director, Zhu, did not confirm that in an interview with the Daily economic news. Gome spent the "most dangerous Moment" November 24, 2008, Gome original board chairman Huang Guangyu suspected economic crimes, Gome announced the suspension of business, before the suspension of the 1.12 Hong Kong dollar.　　Since then, in order to resolve the large amount of convertible bonds will be due to redeem the cash dilemma, Gome began to look for strategic investors. "Bain's injection has certainly solved the problems facing gome now and in the future."　　"This is the first statement by Gome's spokesman, He Yangqing, about the meaning of the" daily economic news "about Bain injection. Shipeng that Gome now faces the main problem is funding, especially large funds. "As Gome has been through the most crisis, its relationship with suppliers has been optimized, but because Gome has spent too much money on mergers and acquisitions in the past two years, Gome Maki in ' big money '. "Among them, the 4.6 billion Hong Kong dollar convertible bonds issued in 2007 are likely to be redeemed early by May 2010, 3.6 billion yuan to buy large and medium appliances and 2.2 billion yuan to buy back the shares of the company in early 2008,　　and the investment of 537 million U.S. dollars in the triple trading, and the large-scale expansion of the opening of more than 100 new stores, which have increased gome's cash outflow, resulting in equity investment in the book loss has nearly 2.5 billion yuan.　　Shipeng said that Bain shares, is to solve the "money" problem, of which there are two, a trap (mainly 4.6 billion of the early redemption of convertible bonds); second, to increase shareholder confidence in Gome, this from a premium purchase of Gome's new convertible bonds can be seen. Liu Buzhong, a famous home appliance expert, said that if Gome had been more like a family-owned company, Gome is now fully transformed into a professional executive power structure. Bain's entry has greatly optimized Gome's equity structure.　　In this sense, the current gome has entered the era of the capital of the Berlusconi. Wired suning financing 2.8 billion yuan Suning contrarian open shop 250 every reporter Zhongchunhui from Shanghai suning Appliance (002024,SZ) announced in Saturday that this year, the plan for targeted additional no more than 200 million shares to raise about 2.8 billion yuan capital, mainly to build logistics platform and accelerate the development of chain noodles,　　Plans to create 250 or so stores. Zhang Jindong plans to cast 300 million subscription shares announced that the total number of shares issued in the private issue of not more than 200 million shares (including 200 million shares), the issue price is not less than15 RMB/Shares, all for the specific object of Non-public offerings, including Suning holding shareholders and the actual control of Zhang Jindong, as well as securities investment funds, trust companies, financial firms, insurance institutional investors, qualified foreign institutional investors and other institutions or individual investors, of which Zhang Jindong will be in cash 250 million yuan ~　　350 million Yuan subscription for this non-public offering shares, but agreed to Zhang Jindong subscription of shares within 36 months shall not be traded or transferred. The share of Zhang Jindong will change after the release, but its status as controlling shareholder and actual control person will not change. Data for the end of March showed that Zhang Jindong directly owned 28.61% of the company's shares.　　At the same time Zhang Jindong also owns the company's second largest shareholder Jiangsu Suning Electric Appliance Group Co., Ltd. 28% of the shares, while Jiangsu Suning Appliance Group Co., Ltd. holds 14% of the company's shares.　　The opportunity to open the shop bucking the expansion of Suning said, the fund raised about 1.4 billion yuan will be used to expand the 250 or so chain development projects, in addition, about 1 billion yuan into 6 logistics center construction projects, the remaining nearly 400 million yuan to supplement the enterprise liquidity, to promote the custom underwriting strategy and enhance the supplier service capabilities.　　Suning said, the company plans to use the way of leasing stores in north China, northwest, northeast, central China, east, south China, southwest development of 250 chain stores, the new chain area of 979,800 square meters, the formation of new 18.09 billion yuan sales scale. Suning in the analysis of the distribution plan, "2009 with the national domestic demand pull policy, China's macroeconomic development trend gradually better, consumer demand gradually rebound, home appliances market also shows the trend of sustained growth."　　"The report believes that in the Chinese market a new round of domestic demand development stage, I believe that the future of household appliances market capacity will continue to maintain a relatively stable growth."　　Suning since the beginning of 2006, has maintained a high rate of opening the shop, the current Suning's national stores in the number of about 850, the company has made more than 200 stores to complete the 2009-year shop plan, plans to exceed 1000 stores a year.　　Industry insiders generally believe that Su Ning's main competitor Gome is currently encountering difficulties in the industry supply chain impact, is suning curve beyond the good opportunity, suning in the emphasis on the profit of a single shop based on the defense policy, and gradually strengthen the chain shop layout, to fill the gap in the market's proactive strategy. At the same time, the financial crisis also helped the development of suning in some way.　　Huang Kaixin, a financial analyst at Sun Hung Kai, said recently that cash-rich retailers should take the opportunity to buy expansion because costs would soar when the economy recovers, making it more difficult to open a shop.　　The reporter observes the su ning exerting force Gome to press the United States to release the announcement recently, this year plans the directional additional issue not to exceed 200 million shares, in order to raise about 2.8 billion yuan capital mainly uses in the acceleration store layout and promotes the logistics platform construction. Shipeng said that the continuous innovation of household electrical appliances technology is making the appliance chain industry is in a "search-type" marketing to "bodyThe process of "the marketing transformation", this stage the consumer must personally contact, experience the product, only then may produce the purchase, therefore the store scale is still the first place. As a result of the financial crisis, suning in this period, can be said to be the industry to copy the bottom, although some people say that Su ning in the old way of Gome, but at this time the cost of Suning expansion investment, it could be said that the expansion cost than gome at least 30%.　　Suning now exerting force is gome biggest threat.　　and Suning financing purposes, due to Gome's previous mergers and acquisitions left the capital "hole" and the impact of Huang Guangyu incident, the first financing mainly to solve the future financial crisis, and this series of problems also decided that the United States this year to "optimize" the store and supplier relationship.　　Yesterday afternoon, Gome board chairman Chen Xiao announced Gome successfully introduced the investor--International private equity fund Bain Investment under the Bain capitalglorylimited, and signed an agreement with them. Some insiders worry that gome in the settlement of the financial crisis, and will face a shortage of funds, but He Yangqing said Gome in the introduction of Bain, the overall professionalism of the management team increased.　　Gome has weathered the toughest times and the company will continue to timing, but there is no timetable for further financing. Shipeng that the state of Gome has been in a warmer phase since Mr. Chen's principal.　　Bain's injection and recovery, so that gome more "emboldened", can say "a giant in the wake Up", and Su Ning during this period, constantly expanding their own sphere of influence in the quality of the store than Gome at the same time, more and more close to Gome, "U.S.-Soviet hegemony" still have to see Citigroup and UBS have both given Gome shares a "buy" rating, UBS's target price of HK $1.57, and that the United States 2014 convertible bond prices have been restored from HK $0.22 to HK $0.88.