Friend in need

26 February 2021 By Yawen Chen Follow @ywchen1

China’s $10 bln retailer Suning.com threw a financial lifeline to the troubled property developer. Its founder is now selling a controlling stake as the embattled group faces $5 bln of debt due this year. A government bailout, which may be imminent, would send the wrong message.

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Chinese retailer Suning.com said on Feb. 25 its shareholders plan to sell 20% to 25% of the company to unnamed buyers in sectors including infrastructure, according to a company filing to the Shenzhen stock exchange.

The company said it was notified of the sale by its founder Zhang Jindong and its parent Suning Appliance Group, who respectively hold a 20.96% and 19.88% stake.

The State-owned Assets Supervision and Administration Commission in the Chinese city of Nanjing, where Suning is headquartered, is most likely to become the new controlling shareholder, Chinese financial media Caixin reported on Feb. 26, citing unnamed sources.

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