Gome to raise HK$3.24b via bonds, shares

Gome Electrical Appliances, China's largest consumer electronics retailers by store numbers, yesterday said it would raise no less than HK$3.24 billion by issuing convertible bonds to private equity firm Bain Capital LLC and also offer new shares that qualified shareholders including Bain Capital could subscribe to.

The move is expected to inject fresh capital to the company, which has been troubled by cash problems since late last year when its founder Huang Guangyu was taken into police custody for alleged share trading irregularities. The funds would also help Gome fend off the increasing competition from archrival Suning, the second largest consumer electrical retailer.

Gome shares, which have been suspended since Nov 24 last year, are set to resume trading from today.