(Yicai Global) June 20 -- Chinese retail giant Suning.Com's Japanese subsidiary Laox plans to raise CNY642 million (USD93 million) from investors in order to support business development.
The consumer electronics and duty-free seller will issue the shares and grant new-share subscription rights to Suning Appliance Group's wholly owned unit Grand Galaxy and Chubun Sangyo's subsidiary Global Worker, Suning.Com -- which owns both of the parent companies -- said in a statement yesterday.
Laox wants to strengthen its trade and e-commerce business in China and extend its duty-free stores to run lifestyle and fashion outlets in Japan, the statement added.
After the issuance, Grand Galaxy will have a 33.8 percent stake in Laox and 34.5 percent of voting rights, making it the target's largest shareholder. Another Suning Appliance unit Granda Magic will have a 29.8 percent stake with 30.4 percent of rights.
The move will exclude Laox from Suning.Com's consolidated reports.
Founded in 1930, had 38 tax-free chain stores as of March 31. Suning.Com's Hong Kong unit picked up a 27.4 percent stake for CNY57.3 million in 2009 to become its largest shareholder and has been building up is holdings ever since.