DOMESTIC retailer Suning.com Co.’s shareholders plan to sell 20-25 percent of the company to unnamed buyers which might lead to a change in control as its parent seeks to raise cash.

The firm was notified of the stake sale by its founder Zhang Jindong and its parent Suning Appliance Group, who respectively hold a 20.96 percent and 19.88 percent stake in the firm.

Suning.com’s other shareholders include e-commerce giant Alibaba Group, which bought a 19.99 percent stake as part of a strategic partnership in 2015.

“The transfer, if completed, will help further improve the company’s shareholding structure and the steady implementation of long-term strategy,” Suning.com said in a statement.

Trading of shares in Suning.com, which is one of China’s largest online and offline retailers of electronics and other consumer goods, were suspended Friday. The company said the deal still needs approval by authorities.

Prior to the trading suspension, shares of Suning.com were last traded at 7 yuan (US$1.09) each and a 25 percent stake would be valued around 16.3 billion yuan, according to calculations.

Caixin reported Thursday that the State-owned Assets Supervision and Administration Commission in Nanjing, where Suning is headquartered, is most likely to become the new controlling shareholder.

It also said the other investors might include State-owned firms Jiangsu Transportation, Jiangsu Guoxin Investment Group and Nanjing New Industry Investment Group. Suning.com declined to comment on Caixin’s report.

Concerns about Suning Appliance’s financial health have been raised since last year, when online chatter of a cash crunch pressured bonds issued by the key listed unit. Suning Appliance dispelled the talk as a “rumor” at that time.

(SD-Agencies)