Related News
Bain ups stake for Gome votes
By Pan Xiaoyi |
September 17, 2010, Friday
|
Print Edition
Print Edition
BAIN Capital LLC is to convert its bond holding in Gome Electrical Appliances Holding to boost its stake to 9.98 percent, becoming the second-largest shareholder after disgraced former Chairman Huang Guangyu.
The conversion will help Bain, which backs current Chairman Chen Xiao, gain votes at a special shareholder meeting on September 28.
Gome, in the midst of an internal tussle over control, received a notice from Bain on Wednesday to convert the 1.59 billion yuan (US$236 million) worth of convertible bonds at HK$1.108 (14 US cents) each. The 1.63 billion new shares will be issued next Wednesday, Gome said in a filing to the Hong Kong stock exchange.
The issuance will dilute Huang's shares to 31.6 percent from 35.98 percent as the capital base will be enlarged.
It is Gome's latest efforts to gain more say in the battle with its imprisoned founder Huang at the meeting which is required by Huang in a bid to unseat Chen Xiao and three directors from Bain as well as to overturn the authorization to issue up to 20 percent in new shares.
Gome and Huang have both released a series of letters, seeking support from smaller shareholders.
SS Proxy Advisory Services and Glass Lewis & Co, two firms hired to advise stockholders,?are believed to have suggested rejecting the proposal to oust Chen and voting against the election of Huang's sister Huang Yanhong and his lawyer Zou Xiaochun.
Glass Lewis said Gome had performed well under the current team, and recommended the re-election of the three directors from Bain.
In a separate statement, Gome declined a request from its largest shareholder Shining Crown, owned by Huang, seeking 21 days' notice of plans to issue new shares.
Gome said Bain's investment was in the best interests of the company, and the company need the general mandate to issue 20 percent shares.
The conversion will help Bain, which backs current Chairman Chen Xiao, gain votes at a special shareholder meeting on September 28.
Gome, in the midst of an internal tussle over control, received a notice from Bain on Wednesday to convert the 1.59 billion yuan (US$236 million) worth of convertible bonds at HK$1.108 (14 US cents) each. The 1.63 billion new shares will be issued next Wednesday, Gome said in a filing to the Hong Kong stock exchange.
The issuance will dilute Huang's shares to 31.6 percent from 35.98 percent as the capital base will be enlarged.
It is Gome's latest efforts to gain more say in the battle with its imprisoned founder Huang at the meeting which is required by Huang in a bid to unseat Chen Xiao and three directors from Bain as well as to overturn the authorization to issue up to 20 percent in new shares.
Gome and Huang have both released a series of letters, seeking support from smaller shareholders.
SS Proxy Advisory Services and Glass Lewis & Co, two firms hired to advise stockholders,?are believed to have suggested rejecting the proposal to oust Chen and voting against the election of Huang's sister Huang Yanhong and his lawyer Zou Xiaochun.
Glass Lewis said Gome had performed well under the current team, and recommended the re-election of the three directors from Bain.
In a separate statement, Gome declined a request from its largest shareholder Shining Crown, owned by Huang, seeking 21 days' notice of plans to issue new shares.
Gome said Bain's investment was in the best interests of the company, and the company need the general mandate to issue 20 percent shares.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
