Photographer: Miguel Medina / AFP / Getty Images
Photographer: Miguel Medina / AFP / Getty Images
Soft Chinese Consortium Tha Suning Appliance Group Co. has sold a $ 2.3 billion stake in his registered arm in a bid to raise money, amid concerns that his struggles could affect a wide range of assets including a football club. Italian football SpA FC Internazionale Milano.
Suning.com Co. started. trading on Monday, rising by the 10% daily limit. The jump came after Sunday’s wholesale of the device declaration of state ownership Shenzhen International Holdings Ltd. and Shenzhen Kunpeng Equity Investment Management Co ,. expects to buy 8% and 15% of Suning.com shares, respectively, paying 14.8 billion Yuan in total ($ 2.3 billion).
Suning.com local bands as well jumped on Monday, with the company’s 4.9% bond due on November 2023 climbing as much as 4.4% to 89.9990 Yuan and a 5.5% bond due in August 2021 rising 4% to 92.59 Yuan.
Suning said in a statement on Sunday that bringing in state-owned investors will help the company focus more on their retail business. Analysts expect the company to divert more non-selling assets as refocused, which could include selling 70% of its share of Inter Milan. The company on Monday declined to comment further on the sale of the bets.
Chinese football club Suning alone said over the weekend that it would cease activity, without expansion.
Concerns about the financial health of the sales giant have been growing since last year, when there was talk online of bond money laundering issued by Suning.com, the main registered unit – chat Suning Appliance at the time on rejected as “rumor. “The pressure on Suning comes at a time when other Chinese conglomerates are retreating as Beijing moves to reverse financial risk.
It is also another blow to Chinese billionaires, which includes Suning founder Zhang Jindong, as officials move to more tightly control the flamethrowers overseas. which includes cinema chains, historic buildings and sports clubs.
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“The non-state collections will focus more on their core industries amid the challenging business environment and improve their profitability and efficiency to better compete with global competitors,” Bruce said. Pang, head of macro analysis at China Renaissance Securities Hong Kong.
Strain Signs
A halt to the activity of a Chinese football club adds to uncertainty about the future of Inter Milan. Suning acquired a 70% stake in the club for 270 million euros ($ 306 million at the time) in 2016. Since then the company has expanded their football empire, totaling $ 650 million dealing with the digital broadcaster PPTV – a unit of Suning Holdings Co. – for a three-year television contract with the English Premier League.
Both Suning.com and its parent are facing a near-term high repayment pressure, according to China Chengxin International Rating Co. 15.8 billion Yuan of bonds will be payable this year for the two companies as they face refinancing difficulties, Chengxin said in a report earlier this month.
In a recent sign of liquidity flows, Suning Appliance made a swap offer for Yuan bonds due on Feb. 2. A majority of custodians agreed the 7.3% exchange note for a new two-year bond carrying the only coupon. In January, Suning Appliance said it had pledged 376.5 million shares, or a 4.04% stake, in Suning.com to Minsheng China Banking Corp. to raise money.
Suning Appliance debt risk has also come under additional focus after help China Evergrande Group avoids financial losses by deciding not to seek a return on a 20 billion Yuan strategic investment in the debt developer. Suning is an Evergrande supplier, and a collapse could have a negative impact on its business.
– Supported by Charlie Zhu, Daniela Wei, Kevin Kingsbury, and Jeff Sutherland