Gome and best forgotten

US private equity firm Bain Capital finally exits a tortured six-year investment in Gome Electrical Appliance Holdings close to where it first purchased the stake.
Jailed founder Huang Guangyu never welcomed Bain's involvement
Jailed founder Huang Guangyu never welcomed Bain's involvement

Bain Capital closed the book on a historically fraught relationship with Gome Electrical Appliance Holdings after Wednesday's close with a HK$1.041 billion $130 million clean up block trade that priced at HK$1.13 per share. 

The US private equity firm made almost no money on the sale of the 5.4% stake, which it first purchased in July 2009 via as a convertible bond with a strike price of HK$1.18. At the time Gome was suspended and its founder, Huang Guangyu, under criminal investigation.

Potential investors no doubt queried why Bain chose to divest its remaining stake now. After experiencing so much trouble from Huang...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222