Chinese electronics retail giant Gome's financing scheme has gained new progress and the U.S. private equity firm Bain Capital will reportedly buy a 18% stake in Gome for USD400 million.

In addition, Bain Capital will acquire 12% of Gome's HKD4.6 billion convertible bonds with an annual interest rate of 5%. These bonds were issued by Gome in May 2007 and will be due in 2010. On the completion of these transactions, Bain Capital will gain over 20% of shareholdings of Gome, but Huang Guangyu, founder of Gome who is currently under investigation for financial crimes, will still be the major shareholder of Gome, according to local media reports.

According to a representative from Gome, the two parties are finalizing the details of the investment and all the relevant information will be published through Hong Kong Exchanges and Clearing.

Rumors on local websites state that Chen Xiao, current chairman of Gome, is considering selling his 7.28% stake in Gome, but it was denied by the company.

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