Gome to buy founder's firm

Huang Guangyu is pulling off a deal to consolidate control in China's second-biggest electronics retailer even while he is behind bars.

The founder of Gome Electrical Appliances Holding Ltd, in prison until 2024 for bribery, is set to boost his stake to as high as 55.3 percent after Gome announced plans to buy a company he owns. Gome's shares plunged.

The Beijing-based retailer said on Sunday it signed an agreement to buy Artway Development Ltd for HK$11.3 billion ($1.46 billion) from Gome Management Ltd. Artway, which sells electrical appliances under the Gome brand name, is wholly owned by Huang.