Gome may offload 20% stake to raise funds

Troubled electrical appliances retailer Gome is planning to raise capital through a share sale to counter alarming profit drops.

The company plans to sell 20 percent of the shares owned by its founder and former chairman Huang Guangyu, who is now in police custody, the National Business Daily yesterday quoted an insider of the company as saying.

The report said US private equity firm Kohlberg Kravis Roberts & Co, or KKR, has established an investment consortium with Bain Capital, and they are the most likely bidder for the stake at around HK$3 billion.