Aug. 18, 2010 (China Knowledge) - Suning Appliance Co Ltd<002024>, one of the leading home appliance providers in China, plans to invest US$23 million to increase its stake to 33.8% in Japan-based electronics retailer Laox Co, sources reported.
The move is part of the company's efforts to strengthen its control over the Japanese retailer and enhances its capital base.
In a statement filed with the Shenzhen Stock Exchange. Suning will subscribe up to 21.28 million shares of Laox Co at 95 Japanese Yen apiece via private placement.
The deal is expected to be closed by mid-September and will consolidate Suning's position as the largest shareholder.
The proceeds from share issuance will be used to open more Laox stores in Japan and replenish capital base.
Suning became the largest shareholder of Laox Co in a year earlier, when it acquired 27.36% stake in the firm for RMB 57.3 million.
Copyright © 2009 www.chinaknowledge.com