Gadgets & Electronics

Gome Acquires Remaining 10% Shares Of Yongle For CNY811 Million

Chinese electronics retailer Gome has released a report at Hong Kong Exchanges and Clearing Limited, which says that Gome has inked an agreement with five shareholders, including Chen Xiao, founder of Yongle and current president of Gome, to acquire the remaining 10% shares of Yongle (China) Electronics Retail Company, making Yongle a wholly-owned subsidiary of Gome.

In July 2006, Gome acquired the Hong Kong listed China Paradise Electronics Retail for over CNY5.3 billion. China Paradise Electronics Retail held a 90% stake of Yongle and the other 10% was owned by five shareholders, including Chen. After this acquisition of the 10% stake, Gome will wholly own Yongle (China) Electronics Retail Company.

Gome says it signed the agreement with the five shareholders through Beijing Gome Hengxin Trading Company, a wholly-owned subsidiary of Gome. Gome will pay CNY811 million for the 10% stake, of which Chen, the one holding the most shares, will approximately gain CNY588 million in this transaction.

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