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Gree Electric parent looking to sell: Bloomberg
Posted on Tuesday, 09 April 2019 06:27
A stake in Gree Electric Appliance may be up for sale, with Bloomberg reporting that a 15.0 per cent interest is expected to be sold for around CNY 43.00 billion (USD 6.40 billion).
Citing people familiar with the matter, the news provider observed that parent Gree Group is looking to sell part of its 18.2 per cent interest in the potential target, which had a market capitalisation of CNY 284.00 billion at 29th March 2019.
In a statement with the Shenzhen Stock Exchange, commenting on the media report, Gree Electric said the stake up for grabs would be priced at no less than the average stock price of the last 30 trading days.
A potential buyer has not yet been found for the interest in the Chinese appliance group, which noted the transaction would lead to a change of ownership and the larger parent group is still considering its options.
Founded in 1991, Gree Electric makes refrigerators and air conditioners across three brands, one under its own moniker, and others including Tosot and KingHome.
The group suspended trading on 1st April, due to the uncertainty regarding the change in ownership and to avoid information disclose and abnormal fluctuations in stock price.
Sales of shares are expected to resume tomorrow after closing at CNY 47.21 on 29th March, the last day prior to the halt.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 22 deals targeting household appliance manufacturers announced worldwide in 2019 to date.
The largest of these involves Woongjin Thinkbig increasing its minority stake in Korean water and air purifier and bathroom items manufacturer Coway from 22.2 per cent to 26.6 per cent for KRW 300.00 billion (USD 263.70 million) in cash.
Sweden-based Electrolux, China’s Ogawa Smart Healthcare Technology Group and Shenzhen Crastal Technology, as well as US-headquartered Quip NYC, among others, have also been targeted this year.
© Zephus Ltd