HISENSE Kelon Electrical Holdings Co, a Chinese maker of air conditioners and refrigerators, said the China Securities Regulatory Commission has rejected its plan to buy appliances units from a shareholder.
In a statement to the Hong Kong stock exchange yesterday, Hisense Kelon did not elaborate on why the regulator's Merger and Reorganization Review Committee objected to the proposal, Bloomberg News reported.
Hisense Kelon said in December it planned to buy appliances units held by minority shareholder Qingdao Hisense Air-conditioning Co for 2.54 billion yuan (US$360 million). It proposed issuing 364.1 million shares at 6.98 yuan each to Qingdao Hisense to pay for the stakes.
The acquisition would have increased Qingdao Hisense's stake in Hisense Kelon to 44.5 percent, from 24 percent.
Hisense Kelon said yesterday it has applied to the Hong Kong stock exchange to resume trading of its H-shares which were suspended in 2005. Trading stopped because of a regulatory probe into charges of a misappropriation of funds by a company controlled by Gu Chujun, former chairman of Guangdong Kelon Electrical Holdings Ltd