Gome shares surge after Bain Capital investment

Shares of consumer electronics retailer Gome Electrical Appliances Holdings more than doubled yesterday when trading resumed after US private equity firm Bain Capital agreed to invest up to $418 million.

Gome on Monday agreed a high-profile deal for Bain Capital to invest via convertible bonds and new share offerings, easing investors' concerns over the retailer's stretched balance sheet.

The deal, which would give Bain up to 23 percent of Gome's shares and make it the second-largest stakeholder, is a lifeline for Gome and should boost its earnings prospects, analysts said.