China’s brick and mortar retailer Suning plans to sell a stake worth up to $2.5bn in one of its subsidiaries to shore up its finances. Suning said that the planned stake sale would help improve the company’s equity structure and advance its long-term strategy. Its founder Zhang Jiadong in a speech last week said that he planned to focus the company’s resources towards retail and shed non-core businesses. Suning is not just a retailer but has varied interests, being the owner of Inter Milan FC and was in the spotlight when FT reported it sought $200mn in emergency cash to shore up finances of the team. They also note that Suning has been impacted by investments in property developer Evergrande (CNY20bn or $3.1bn). FT reports that Suning paid off $1.5bn in debt late last year but has more large obligations looming, including $600m of its 7.5% bonds due September 2021, that were up 0.7 cents to 87.25 cents on the dollar.
For the full story, click here