GOME Sets Special Meeting, Bain To Convert Shares

(Reuters) – Chinese retailer GOME Electrical Appliances Holding Ltd (0493.HK) has set a special meeting date of Sept. 28 to address controversial measures proposed by its jailed founder and biggest shareholder, and said Bain Capital will convert its convertible bond into equity, the company said on Monday.

The news came on the same day Gome announced first-half earnings of 962 million yuan, up 66 percent from the same period a year earlier. [ID:nHKF002641]

The Chinese home appliance retailer said Bain would exercise its convertible bond before the special meeting, giving the private equity firm an approximate 10 percent stake in the company, according to a statement issued to the Hong Kong exchange. (US$1=HK$7.77) (Reporting by Michael Flaherty and Donny Kwok; Editing by Chris Lewis)