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Gome says to buy Beijing retail chain operator for nearly USD620m

China’s Gome Electrical Appliances Holding Ltd plans to buy Beijing Dazhong Home Appliances Retail Co Ltd for CNY3.83 billion (USD617 million), formalizing its control of a company it has been managing for around eight years.

Gome said it would buy the whole of Beijing Dazhong from Beijing Zhansheng Investment Co Ltd in a deal set off against a CNY3.6 billion loan previously extended to Beijing Zhansheng, with the remainder paid in cash.

The Hong Kong-listed Gome said in a filing late on Tuesday that it had in 2007 provided a CNY3.6 billion loan to Beijing Zhansheng, under which it had the option to acquire the entire equity interest in Dazhong at any time.

(Source: CNBC)