Chinese retail giant Suning will be given a temporary bailout of RMB 3.2 billion ($500.6 million) as the company faces a liquidity crisis, reports Caixin. The Jiangsu province-based company will transfer 5.59% of its shares to a state-controlled fund in return for the money.
The fund was started by four state-owned enterprises which are ultimately controlled by the provincial government.
Caixin reports that, according to a company filing, the shares are controlled by an affiliate of Zhang Jindong, the chairman of Suning.com, which currently holds 19.7% of total shares. The transfer price will be RMB 6.12 per share, 90% of the closing price Tuesday.
The transfer plan is another attempt by Suning to attract investment to resolve liquidity problems which started to escalate late last year.