Date
26 September 2017
GOME and many other retailers in China are grappling with rising labor and operating costs as well as cut-throat competition. Photo: Bloomberg
GOME and many other retailers in China are grappling with rising labor and operating costs as well as cut-throat competition. Photo: Bloomberg

Bain Capital to sell GOME stake for US$137 mln

Private equity firm Bain Capital is selling all of its remaining stake in Chinese electronics retailer GOME Electrical Appliances Holding Ltd. (00493.HK) to raise up to HK$1.06 billion (US$137 million), according to a term sheet obtained by IFR, a Thomson Reuters publication.

The deal, involving 922 million shares, is being marketed at an indicative price range of HK$1.12-$1.15 each, or a discount of 2.5 to 5.1 percent to the pre-deal spot, the report said.

UBS is the sole bookrunner for the deal.

Bain agreed in 2009 to invest more than US$400 million in GOME, which competes in China with firms like Suning Commerce Group Co. Ltd., Reuters said.

Shares of GOME closed up 2.6 percent on Wednesday at HK$1.19, outpacing a 1.7 percent gain for the benchmark Hang Seng Index.

Many retailers in China are grappling with rising labor and operating costs as well as cut-throat competition.

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CG

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