gome-to-raise-417-million-from-bain-and-others

Gome to raise $417 million from Bain and others

The investment will allow the Chinese home electronics retailer to resume trading today after a seven-month suspension.

Gome Electrical Appliance Holdings yesterday announced an investment agreement with Bain Capital Partners which will result in a cash injection of HK$3.2 billion $417 million. This morning the retailer's stock will resume trading after a prolonged suspension brought about by the disappearance of the company's chairman last November.

As part of the agreement, Gome will issue $233 million of seven-year, renminbi-denominated convertible bonds to Bain, a global private investment firm with about $60 billion under management. The CBs will carry a 5% coupon and an initial conversion price of HK$1.18, which represents a 5.4% premium to the last traded price of HK$1.12...

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