(Yicai Global) Oct.16 -- Suning.Com will transfer part of its stake in the Chinese retail giant's convenience store operation to Zhang Kangyang, son of founder and controlling shareholder Zhang Jindong, the Nanjing-based firm said in a statement.
The parent company along with wholly-owned units Suning Convenience Store and Suning International signed an investment agreement on an overseas capital increase and domestic equity transfer with affiliates Great Matrix, Great Momentum and Suning Smart Life, the statement said.
Great Matrix, Suning International and Great Momentum will increase their capital contributions in affiliate Suning Smart Life by the previously indicated proportions of 55 percent, 35 percent and 10 percent, respectively, and subscribe to the 250 million shares in the latter to the tune of USD250 million.
Suning Smart Life will acquire a 100 percent stake in Suning Convenience Store from the parent company for some CNY745 million (USD107.5 million) through its wholly-owned domestic unit after relevant debts are cleared (audited at about CNY653 million).
Suning will hold a 35 percent stake in Suning Store via Suning International, while Great Matrix and Great Momentum will hold 65 percent (55 percent plus 10 percent) after the deal goes through.
Great Matrix and Great Momentum, the actual transferees of the Suning Convenience Store stake, are wholly-owned subsidiaries controlled by Zhang Kangyang, son of Zhang Jindong, the company's actual controller and controlling shareholder.
Suning Convenience Store runs locations in communities, central business districts and transit stations to meet the needs of consumers for shopping, catering and other local services. It operates some 878 outlets nationwide as of August this year.