Midea swaps stake for Little Swan stock
By Pan Xiaoyi |
November 13, 2010, Saturday
|
Print Edition
Print Edition
GUANGDONG Midea Holding Co yesterday said it has gained regulatory approval to swap a 69.47 percent stake in a washing machine unit in exchange for shares in Wuxi Little Swan.
Midea will receive 84.84 million shares at 8.63 yuan each, for a total of 732 million yuan (US$110 million), and sell part of its stake in Hefei Royalstar Washing Machine Co to Little Swan, according to statements they filed to the Shenzhen Stock Exchange.
The move will boost Little Swan's stake in Royalstar to 69.47 percent while Midea will take the balance. Midea will be the controlling shareholder of Little Swan with a 39.08 percent stake.
The consolidation reflects the companies' efforts to deal with their overlapping washing machine business before 2011 to improve business efficiency.
"Little Swan is expected to keep growing fast as the consolidation will lift its business efficiency," Guosen Securities Co wrote in a note.
The deal will strengthen Little Swan's position in the washing machine market as it boasts full product lines covering customers in all segments.
Midea will focus on refrigerators, air-conditioners and small home appliances.
The China Securities Regulatory Commission granted the approval on Wednesday.
Midea will receive 84.84 million shares at 8.63 yuan each, for a total of 732 million yuan (US$110 million), and sell part of its stake in Hefei Royalstar Washing Machine Co to Little Swan, according to statements they filed to the Shenzhen Stock Exchange.
The move will boost Little Swan's stake in Royalstar to 69.47 percent while Midea will take the balance. Midea will be the controlling shareholder of Little Swan with a 39.08 percent stake.
The consolidation reflects the companies' efforts to deal with their overlapping washing machine business before 2011 to improve business efficiency.
"Little Swan is expected to keep growing fast as the consolidation will lift its business efficiency," Guosen Securities Co wrote in a note.
The deal will strengthen Little Swan's position in the washing machine market as it boasts full product lines covering customers in all segments.
Midea will focus on refrigerators, air-conditioners and small home appliances.
The China Securities Regulatory Commission granted the approval on Wednesday.
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