A consortium led by Alibaba Group and the Jiangsu Provincial government are set to buy a stake in Suning.com according to sources. They added that Suning.com is expected to make an announcement this week, and their founder Zhang Jindong will not have control of the company once the deal is done. Suning’s shares had a trading halt on June 16 and their bonds crashed after a local bond was extended and 5.8% of Jindong’s stake was frozen. The market value of the company was $8bn at the time. Jindong holds a 20.96% stake in Suning.com. Alibaba already owns a 20.8% stake in Suning.com as a long-term ally and would likely increase it further if a deal is struck. Bloomberg’s sources note that negotiations are going on and a deal could be delayed or even fall apart.
Granda Century’s 7.5% 2021s guaranteed by Suning Appliance are down 1.6 points to 59.75.
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