Warburg Pincus’ portfolio company GOME Electrical Appliances Holding has suspended trading of its shares, according to a statement from GOME.
This follows allegations that Wong Kwong Yu, GOME’s chairman, executive director and controlling shareholder, was allegedly detained for share price manipulation, according to media reports.
To date, the Beijing-based company has not received any notice in connection with the allegations from any Chinese authorities, said a GOME spokeswoman who declined to comment further.
In 2006, Warburg Pincus injected $150 million into GOME for an approximately 9.71 percent stake. The deal took the form of $125 million-worth of five-year convertible bonds and $25 million in five-year warrants.
Founded in 1987 by Wong, GOME is one of the largest retailers of electrical appliances and consumer electronics in Mainland China and Hong Kong.