Gome retail resumption of more than 10%, intending to acquire all the equity of Pengrong Real Estate owned by Huang Guangyu

On August 22, 2022, Gome Retail (00493.HK), a listed company of Hong Kong stocks, resumed the trading, which opened high and low, and once fell more than 10%.

On the news, the company announced on August 19, 2022 that it might have performed a very major acquisition and related transactions.

On July 20, 2022, Gome Retail Established an agreement. Based on this, the company had the conditions to agree to the purchase of all equity of the target company, the target company of Gome Real Estate Holdings Co., Ltd., which is Pengrong Real Estate (Overseas) Co., Ltd. The seller was eventually owned by Huang Guangyu, the controlling shareholder of Gome Retail; the main assets of the target company were Gome and Merchant Property and Xiangjiang Ji Property.

The cost of acquiring target equity will be determined by the valuation of the independent valuations hired by the Gome Retail Commission on the valuation of target rights. The valuation is still ongoing, and the exact amount of the price has not been determined at the announcement date. The acquisition may constitute the company's very major acquisition and connected transactions.

Regarding the reason for the acquisition, the company stated that with the goal of improving future operating efficiency, it is planned to reorganize the business sector and optimize the asset structure, and finally realize the improvement of the group's profitability. Essence

The plan is mainly due to open source streams, simplifying the complexity, focusing on the core main business, and creating a new profit model; optimizing the asset structure, promoting the change of corporate structure and management upgrade.

The company believes that after the injection of the physical assets, it can greatly improve the company's asset adequacy ratio. At present, it is a suitable time to purchase the target equity to purchase such properties. At the same time, from the perspective of market financing, acquisitions can greatly enhance financial institutions' confidence in the company's business, which is conducive to the company's future refinancing. At the same time, the acquisition matters can be greatly promoted to the establishment of the Group's offline city display experience center, and improve its core competitiveness in the core business.

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