According to reports in Japanese local media, the country's electronics retailer Laox is talking with the Chinese home appliances retailer Suning and plans to sell parts of its stake to the Chinese company.
According to a plan, Laox will issue shares valued at about JPY1.5 billion, which is about USD15.6 million and accounts for over 50% of the company's total shares. Suning is expected to buy about 30% of these shares and will gain a seat on the board of directors of Laox.
The news has been confirmed by Suning and the company said it is indeed talking with the Japanese retailer on a possible partnership. According to Han Feng, Suning's representative for securities issues, the two companies have not reached any agreement, but stake cooperation will not be excluded. The two companies also communicate about the development of the industry and business cooperation. If they reach any agreement, it will be published during the next week.
Laox is considering business restructuring after it reported losses for nine consecutive years; while its potential partner Suning made net profit of CNY2.17 billion in 2008, a year-on-year increase of 48%. Suning said it plans to open 200 new outlets this year.