Gome Retail (00493) announced that on December 27, 2023, the company and its two subsidiaries (...
Zhitong Finance App News, Gome Retail (00493) announced that on December 27, 2023, the company and its two subsidiaries (namely Gome Electric and the seller, Ningbo Meishan Bonded Port Area Gomeixin Shengda Venture Capital Partnership (limited partnership)) signed an agreement with Jiangsu Jingdong Bangneng Investment Management Co., Ltd. (buyer) and bondholder Danube Innovation Limited (ultimately controlled by JD.com, Inc.) to settle some of the bonds.
According to reports, on May 28, 2020, the company signed a subscription agreement with JD.com International Limited (subscriber), a wholly-owned subsidiary of JD.com, Inc., and the subscribers agreed to subscribe for 50% convertible bonds issued by the company with a principal amount of 100 million US dollars due in 2023. The Company issued these bonds on June 30, 2020. The bonds matured on June 30, 2023, but the bonds have not been repaid as of the date of this announcement.
According to the agreement, the seller will sell 21.6495% of Shenzhen Shifen Home Service Technology Co., Ltd. to the buyer at a cost of 105 million yuan, all of which will be used to settle the equivalent bonds. The group is expected to achieve sales revenue of approximately RMB 13 million.
After the equity transfer is completed and no earlier than February 17, 2024, the bondholders will convert the bonds equivalent to the principal amount of RMB 145 million into shares in accordance with the bond terms. The conversion price is HK$1.24. A total of 128.6.4 million shares will be issued to the bondholders, accounting for about 0.27% of the company's current issued share capital.
The announcement stated that the proposed transaction under the agreement was aimed at enabling the company to repay part of the bonds and enable the company to continue to sincerely discuss solutions to settle the bonds with bondholders.