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Gome plans stock placement to dilute Huang's stake

(Agencies)
Updated: 2010-08-16 11:18
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GOME Electrical Appliances Holdings Ltd plans to sell 3 billion shares in a private placement, diluting the stake held by its founder Huang Guangyu, the China Business News reported today, citing an unidentified person familiar with the situation.

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Gome's board of directors may sell 1.5 billion shares, equilvant to 10 percent of the company's outstanding listed shares, to Bain Capital LLC, the newspaper said.

Gome sued its founder Huang Guangyu, once China's richest man, over share repurchases in 2008 and breach of trust.