Bain is the leading contender for a stake in China’s Gome
Posted by: admin in Investments and Raising MoneyFiled under: KKR, Raising money, Bain Capital, Warburg Pincus
Bloomberg reports that Gome Electrical Appliances Holdings Ltd. might sell up to 20% of the company to Bain Capital. The asking price is said to be in the neighborhood of $500 million. KKR & Co. and Warburg Pincus are also said to be interested in the stake in Gome.
With more than 800 stores in 160 cities, Gome is China’s second-largest electronics retailer, which makes it a tempting target for investors looking for alternatives to recession-constrained businesses in the United Says, Europe, and developed markets in Asia.
Selling the stake will help Gome reduce debt and boost reserves. Gome stated it had cash and cash equivalents of 3 billion yuan at the end of last year, less than half the amount in the previous year. The final size of any transaction could change, depending on whether further capital was needed.
Though Bain is the leading contender thus far, Gome has yet to formally choose a preferred buyer.
Bain is the leading contender for a stake in China’s Gome originally appeared on BloggingBuyouts on Thu, 28 Might 2009 11:40:00 EST . Please see our terms for use of feeds.
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