Gome Chairman Reduces Stake to 1.91%
Beijing Business Today, 7/08/09
Chinese consumer electronics and home appliance retailer Gome (0493.HK) has announced that Gome chairman Chen Xiao has dissolved the Yongle Trust Company established in 2006 when Gome acquired Yongle Household Electrical Appliances. Gome shares held in Yongle Trust, which was managed by Chen, will be completely returned to the former Yongle shareholders it represented. At the same time, Chen will also gift some 7,000 Gome shares (a 0.5% stake) to his daughter, Chen Ye. After these changes, the stake Chen Xiao manages in Gome will decrease from 6.97% to 1.91%.
An inside source has divulged that the plan is in response to Gome's recently released financial plan which allows older stockholders to choose whether to receive new shares at a set price. After Yongle Trust is dissolved, each beneficiary can choose for themselves whether to participate in the new issue.
Editor's Note: Chen Xiao said he himself will participate in the new stock issue. Chen and his daughter hold a combined 2.39% stake, and will spend at least HKD 36.89 mln on the new shares, reports 21st Century Business Herald.
For more background on this topic, please see
"Gome Releases Investment Agreement with Bain Capital" MD 6/23/09 issues.
Keywords: 0493.HK Chen Xiao Gome Yongle retail consumer electronics home appliances
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