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Gome denies rumors to sell shares

By He Wei | chinadaily.com.cn | Updated: 2013-02-25 21:38

Gome Electrical Appliances Holding Ltd, China's second-largest electronic appliance vendor by revenue, has denied rumors of selling shares to any investor including Best Buy Co.

The Hong Kong-listed retailer said in an announcement that it is not aware of any plan by Wong Kwong-Yu, the controlling shareholder of the company, to sell his interests in the company or have any discussions or negotiations with potential purchasers.

He Yangqing, vice-president of Gome, said these assertions are ill-intentioned and the company has stayed on a healthy and benign cycle since the introduction of a development plan in 2013 to 2015.

For instance, Gome integrated the two online shopping sites Gome.com.cn?and?Coo8.com?in December to centralize management and share resources.

Gome's anticipated earnings slump, fueled by soaring costs and the unprofitable e-commerce business units, has fanned speculation that Gome is scouting for new partners to claim its shares. One alleged potential buyer is its foreign counterpart Best Buy.

But the US electronics giant failed to adapt to the local market, and closed its Shanghai headquarters in 2011 along with nine Best Buy-branded stores. In June 2012, it announced its return to China by introducing its mobile devices retailing business Best Buy Mobile to Chinese consumers.

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