Compiled by Caijing staff

(Caijing.com.cn) Gome Electrical Appliances Holding Ltd. (HKSE: 00493), China's largest consumer electronics retailer, said it expects to raise about HK$3.2 billion from a convertible bond issue to U.S. private equity firm Bain Capital, as well as a new share issue to existing shareholders.

The company has signed an agreement to sell HK$ 1.8 billion worth of seven-year convertible bonds with a 5 percent coupon to Bain Capital, it said in a statement filed to the Hong Kong exchange on June 22. The bonds will be priced at HK$1.18, representing a 5.4 percent premium on Gome's last trading price of HK$1.12.

Gome said it has applied for its shares to resume trading on June 23. Gome was suspended from trading on Nov 24 after founder Huang Guangyu was placed in detention for alleged "economic crimes".

The retailer also proposes to launch an offer of up to 2.48 billion new shares at HK$0.672 per share on the basis of 18 new shares for every 100 shares held. Bain will underwrite the share issue.

Bain will hold a stake of between 9.8 and 23.5 percent in Gome, assuming the bond issue is fully subscribed and depending on shareholder interest in the share offer, the statement said. 

1 yuan = 14 U.S. cents