BEIJING, May 29 (Xinhua) -- JD.com, Inc. (JD.NASDAQ), one of the largest E-commerce operators in China, inked an agreement with its retailer peer GOME Retail Holdings Ltd. (00493.HK) to subscribe the latter's 100 million U.S. dollars overseas convertible bonds, reported China Securities Journal Friday.
The Xinhua-run newspaper cited an announcement released by Gome Retail late Thursday as saying, highlighting that the initial conversion price was set at 1.255 Hong Kong dollars per share, 37.91 percent higher than the company's share price by the Thursday closing.
If the conversion rights were fully exercised, JD.com is expected to own about 620 million new shares of Gome Retail, accounting for 2.80 percent of the latter's enlarged issued capital stocks after the convertible bond issue.
Hence, the two sides pledged to enhance multi-sector cooperation in purchasing, marketing, logistics, home appliance post-services, and franchise stores.
Previously in mid April, Gome Retail just forged partnership with Chinese E-commerce upstart Pinduoduo Inc. (PDD.NASDAQ), under which Pinduoduo would subscribe about 200 million U.S. dollars of Gome Retail's convertible bonds. If the conversion rights were fully exercised, Pinduoduo may gain up to 1.28 billion new shares of Gome Retail, making up 5.62 percent of its diluted issued capital stocks after the convertibles sale.
The report held that as Gome Retail, a large Chinese home appliance retailer, remained determined to invigorate online and offline business, China's home appliance market might undergo some changes. (Edited by Duan Jing, email@example.com)