Hogan Lovells represents majority shareholder in high-profile GOME shareholder vote
06 October 2010
HONG KONG, 6 October 2010 - Hogan Lovells represented Shinning Crown Holdings Inc, the majority shareholder in GOME Electrical Appliances Holdings Limited, in respect of various issues relating to the Special General Meeting of GOME, held on Tuesday 28 September in Hong Kong.
GOME Electrical Appliances Holdings Limited is one of the largest privately-owned electrical appliance retailers in Mainland China and Hong Kong.
Shinning Crown Holdings Inc is a company wholly owned by Wong Kwong-yu and owns 32.5% of GOME Electrical Appliances Holdings Limited. As majority shareholder, Shinning Crown Holdings requested that the current Chairman of GOME be removed from the board and that the board's ability to issue new shares in GOME Electrical be withdrawn. Whilst the motion in relation to the proposed board reshuffle was lost by a narrow margin, the majority shareholders were successful in preventing the Hong Kong listed firm from issuing new equity.
Other shareholders in GOME include Bain Capital, which had converted its RMB1.6 billion worth (US$240 million) of Gome Electrical Bonds into shares ahead of the Special General Meeting, giving it a near 10% holding in the company.
Commenting on the vote, Hogan Lovells partner Neil McDonald based in Hong Kong said: "Hogan Lovells were instructed to safeguard the majority shareholder's rights and we will continue to act to ensure that the majority shareholder is allowed to remain as an active and involved shareholder."
Partner Chris Dobby also based in Hong Kong added: "The firm has a strong reputation in the market for advising and guiding clients on high profile shareholder matters. We feel that this experience has been instrumental in facilitating a successful outcome on one of main issues for the majority shareholder."
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