Suning.Com. announced on Monday that it is going to sell off its 16.6 per cent of stakes from the conglomerate. It comprises Suning Appliance Group, Zhang Jidong and Suning Group. The Chinese retail giant will sell 1.58 billion shares to a consortium at USD 0.87 share a piece (5.59 yuan). The deal worth USD 1.4 billion comes amid the concerns of cash overflow in the market.
As per the Shenzhen Stock Exchange, Suning’s filing notices that the consortium belongs to an investment firm of the Jiangsu provincial government situated in China’s east. Suning is situated in the capital city of Nanjing.
Interestingly, it also includes investors like Xiaomi (smartphone manufacturer), Midea group, Haier group (home appliances), TCL Technology Group (electronics), and Alibaba Group Holding (e-commerce giant).
Notably, once the shares are transferred to Suning.Com will hold no control as per the company statement.
Meanwhile, the company asserts that it will incur a loss of approximately 3.2 billion yuan in the first half of the year. It would be higher than the losses it had last year, which was 167 million.
Interestingly, the company saw a record plunge in a decade on June 15, 2021. However, Tuesday saw a glint and jumped by a maximum of 10 per cent with people showing some assurance in the policies and matters that escalated lately.
It is noticeable that Zhang, the owner of China’s biggest electronics retailers worth USD 8 billion bought stakes in several companies. It snapped football club Inter Milan and Carrefour’s Chinese business. He took a lead for investing in an embattled property developer in 2017.