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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