Wong Kwong Yu Lures Gome Votes with 400 Stores
Beijing Youth Daily, 9/15/10
With two weeks to go before the extraordinary shareholders meeting on September 28, Zou Xiaochun has traveled to Hong Kong to promote Wong Kwong Yu's development plan for Chinese home electronics retailer Gome (0493.HK) in the event Wong wins control of the company. Zou is Wong's choice to replace current board chairman Chen Xiao. Zou said that in the event he wins, Wong will transfer the nearly 400 Gome stores operated by Wong's Beijing Gome United Technologies into its Hong Kong-listed sister company.
Zou said Wong expects to exchange the Beijing Gome stores for equity. If successful, the transaction would increase the number of stores controlled by Gome from 740 to 1140, up 54%. Zou added that Wong always believed Gome would be able to accelerate the opening of new stores. Based on Gome and rival Suning's (002024.SZ) latest earnings reports, as of the end of H1 2010, Suning has 1,075 stores compared to Gome's 740.
Editor's Note: For more background on this topic, please see "Gome Former Chairman Issues Ultimatum" MD 8/30/10 issue.
Keywords: Zou Xiaochun HR Chen Xiao Wong Kwong Yu hardware Gome Suning 002024.SZ 0493.HK H1 2010 consumer electronics home appliances retail
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