Suning Seeks to Buy Stake From State-Backed Fund Despite Drowning in Debt

Caixin Global | Jun 23, 2021 at 10:40 PM
  • Chinese retailing giant Co. Ltd. (002024.SZ) has unexpectedly announced plans to buy a stake in a company owned by a Shenzhen government-backed investment fund even as it continues to frantically sell off assets including staff apartments in order to pay down its spiraling debts.
  • Co. Ltd. will garner it more high-quality assets such as shops and it will use funds raised from newly issued shares and cash to finance the deal.
  • In February, signed an agreement with two state-owned investment entities in Shenzhen that includes the sales of a combined 23% of the company’s shares for 14.8 billion yuan.