Suning.com Gets $1.36 Billion State-Backed, Alibaba Bailout
- Founder Zhang Jindong cedes control of troubled retail unit
- Alibaba, Midea and Xiaomi are also part of bailout group
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Chinese billionaire Zhang Jindong secured a $1.36 billion state-backed bailout for the troubled retail arm of his Suning empire, marking another step in Beijing’s efforts to clean up its heavily indebted conglomerates.
A group of investors, led by the Nanjing state asset management committee and the Jiangsu provincial government, will take a 16.96% stake in Suning.com Co., according to a statement Monday. The deal was struck at 5.59 yuan a share, the near eight-year low the stock was trading at before it was halted June 16. The shares surged 10% in Shenzhen trading Tuesday.