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Gome Huang Guangyu held within five years will buy 179 stores - Gome Huang Guangyu, store - HC Netwo

By: frbiz man

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Will be acquired within five years
Huang Guangyu
Held by the 179 shops

 

The country's largest electrical
Retailers
States United States
Electric (0493.HK) has announced a total consideration of 6.986 billion Hong Kong dollars, the largest shareholder of Huang Guangyu, chairman and buy backdoor listing in 2004 due to regulatory constraints but not into the GOME Electrical Appliances Co., Ltd. 35% stake. GOME Electrical Appliances Company
Financing
With the development of right-Feng Lin, head of interview with this reporter, said the company will also, within the next five years, Huang Guangyu acquired its holdings of 179 Gome stores.


Under the agreement, the total transaction cost of 6.986 billion Hong Kong dollars, the Gome Huang Guangyu intends to issue 650 million new shares at an issue price of 8.05 Hong Kong dollars per share, the company announced the same price before the suspension, equivalent to pay 5.235 billion Hong Kong dollar, and another 990 million Hong Kong dollars in cash, the remaining 761 million of debt offset by the Hong Kong dollar Ze Yi Huang Guangyu. After completion of the transaction, holders of Gome Huang Guangyu owned by 66.04% increased to 75.67%.


Acquisition pricing, the equivalent of GOME Electrical Appliances Co., Ltd. 35% interest in 25 times the share of net profit, slightly lower than the valuations before the suspension, Gome valuation of 27.7 times price-earnings ratio. Right-Feng Lin said, as listed companies held by Gome, Gome has 65% interest, so the remaining 35% interest in the purchase price is mainly to measure the market value of listed companies. He described the current GOME hold about 21 billion in cash, sufficient to pay for acquisition of the necessary funds.


The acquisition, Gome will be fully entitled to the mainland 246 U.S. stores operating income countries. According to the company's recently announced results of last year, the acquisition of 35% interest in attributable net profit last year, 278 million. Lin Feng said the right, assuming the completion of the acquisition in 2005 and since January last year to reflect performance, Gome earnings per share increased 6%. It is expected that the acquisition will bring the ideal Gome profit growth this year. In addition, the acquisition of shares also enable the company uniform, simplified shareholding structure, and good for business
Finance
And operational improvements.


Huang Guangyu was selling new shares, on Gome's shares as high as 75.67%, while the public shareholding is reduced to 25%. Right-Feng Lin said, the majority shareholder will the extra 0.67% stake for overseas distribution, to ensure completion of the transaction public float ratio at 25% above the minimum limit, the equity adjustment is expected to be completed in five months.


Concern is that the acquisition is completed, Huang Guangyu in Mainland China still has 179 stores in the interests of the United States, mainly based in Beijing. Right-Feng Lin, said Huang Guangyu major shareholders have made a commitment, in accordance with the plan, listed companies within the next five years will buy the rest of Huang Guangyu of GOME under 179 stores, but not yet developed a specific timetable.

Article Source: http://depositarticles.com/

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