Suning gets US$2.3 billion injection to relieve debt loan
Suning Group's appliance and retailing business unit Suning.com said it has received 14.8 billion yuan (US$2.3 billion) in investment from state-backed investors for a 23 percent stake to relieve short-term debt load.
Suning Group Chairman Zhang Jindong, the controlling shareholder and actual controller of the company, will cut the equity stake and voting rights, with a combined 21.8 percent of the shares along with Suning Holding group and Suning Electric Appliance Group after the completion of transaction.
TTCO Trust Cooperation will also transfer about a 3.07 percent stake to the new shareholders.
Shenzhen's state-backed Shenzhen International Holdings and Kunpeng Capital would hold a combined 23 percent of stake.
Suning has carried out a number of high-profile acquisitions in recent years, including Japanese retailer Laox, Italy's Inter Milan soccer club and the Chinese unit of French retailer Carrefour.
Suning.com shares will resume trading from the opening of the market on Monday after it filed for suspension of trading on Thursday last week.
"State-backed assets' investment in Suning.com fully recognized our strategic model and investment value so that we can better focus on the core retailing business," the company said in a statement.
This would be beneficial for the company's ongoing efforts to improve operation efficiency and profitability, it added.
It will set up south China headquarters in Shenzhen to enhance business capability and fully leverage the local resource advantages.
The pandemic has hit its retailing business hard as Suning.com reported a 4 percent drop in operation income and a full-year net loss of 3.9 billion yuan compared to a profit of 9.8 billion yuan from a year ago.
The new shareholders will collaborate with Suning along with other state affiliated companies in Shenzhen in areas such as supply chain, e-commerce, technology, logistics and tax-free business.
Suning Appliance Group, which was one of the majority shareholders of Suning.com and held 16.8 percent of stake ahead of the equity transfer, has also announced on Sunday that Chinese Super League (CSL) champion Jiangsu FC will no longer be able to operate due to financial reasons ahead of the 2021 season.