Changhong Still on Acquisition Trail - ResearchInChina

Date:2007-12-25liaoyan  Text Size:
Appliance maker Sichuan Changhong Electrical Co today bid for a 29.92 percent stake in Huayi Compressor Co.

China's second-biggest TV maker said in a statement to the Shanghai Stock Exchange today that it would acquire 91.7 million shares from Huayi's parent Huayi Electrical Appliance General Co via an auction.

The Jiangxi-based Huayi, which produces compressors for air conditioners and refrigerators, has been suspended from trading on the Shenzhen stock market since December 14 when it announced the auction plan.

The 91.7 million shares are valued at 956 million yuan based on its closing share price of 10.42 yuan a share on December 13.

Changhong wasn't traded yesterday and its closing price on Friday was 8.45 yuan. The share price of the Shanghai-listed company has doubled this year.

Changhong's net profit in the first nine months of this year was 340 million yuan, jumping 39 percent from a year earlier on the booming electronics market and investment income.

The company in August acquired rival Hefei Meiling Co and in June sold a 0.8 percent stake to Microsoft at 94 million yuan as part of an alliance to jointly develop TVs that can connect to the Internet.

Rising incomes in China have fueled spending on television sets, computers and digital cameras, spurring growth at Changhong and larger rival TCL Corp. Retail sales of household electronics surged 20.3 percent through the third quarter in China.
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