摘要
It is ten months after the Shanghai Paradise Electrical Appli- ances Co. was listed in Hong Kong. Once being the third largest house- hold electrical appliances retailer, Paradise is now carved up by its rivals. This is the biggest merger ever in China household electrical appliances industry. A new age is unveiled. On the evening of July 25th, the biggest two electrical appliances retailer Gome and Suning announced jointly that Gome (0493.HK) has ac- quiredP aradise (0503. HK) with HK$5.268 billion (US$677 million). After a share swap plus cashpayment, Gome paid US$409 million for the merger. Wong Kwong Yu, the chairman of Gome, and his associates will hold 51.2% of the new Gome shares, while Paradise’s president Chen Xiao will have 12.5%. Hereon, Paradise will quit the market as well as its battle with Gome and Suning. Although the brand of Paradise will remain and Wong has invited Chen to be the CEO of the merged company, every- body is clear that this is a curtain call for Chen. As a businessman, Chen is absolutely successful. In the past nine years, Paradise has grown from a small joint-stock company with a sale figure of RMB100 million (US$12.5 million) into an electrical appliances giant pocketing over HK$5 billion (US$640 million). Analysts from Morgan Stanley say that the takeover will strengthen Gome’s role as the top retailer of home appliances in China, but it does not mean much to Gome’s profiting capability, which will depend much on the future integration of the two firms.
It is ten months after the Shanghai Paradise Electrical Appli- ances Co. was listed in Hong Kong. Once being the third largest house- hold electrical appliances retailer, Paradise is now carved up by its rivals. This is the biggest merger ever in China household electrical appliances industry. A new age is unveiled. On the evening of July 25th, the biggest two electrical appliances retailer Gome and Suning announced jointly that Gome (0493.HK) has ac- quiredP aradise (0503. HK) with HK$5.268 billion (US$677...
