Huang Guangyu, who was sentenced to more than a decade behind bars in China for stock market manipulation, has finally sold his controlling assets in his electronics retail firm.

Gome Electrical Appliances Holding Limited published a report that the company has reached a revised agreement to acquire retail assets owned by its controlling shareholder Huang Guangyu for HKD9.095 billion.

According to this new agreement, Huang's wholly-owned 578 retail stores will be sold with a 20% discount and injected into the listed company of Gome.

On July 26, 2015, Gome Electrical Appliances announced plans to acquire the entire issued capital stock of Artway Development Limited, which is wholly-owned by Huang, who has spent time incarcerated in China. As the result of the acquisition, the related non-listed retail network and supply chain assets will be fully injected into the listed company and the total transaction consideration was HKD11.268 billion at that time.

With the revised agreement, the total consideration will be reduced to HKD9.095 billion, marking a 19.3% discount. Commenting on the price adjustment, Gome said considering the weak market environment in the recent period, the major shareholder agreed to amend the terms of the acquisition to promote the long-term development of the company.

On the completion of the deal, Gome will complete pan of a nationwide network, expanding its coverage from 269 cities to 436 cities. In 2013 and 2014, the revenue of those non-listed retail stores was CNY19.611 billion and CNY20.992 billion, respectively.

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