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Haier Group to buy 20% stake in Fisher & Paykel Appliances

Published: 28 May 2009 17:22:18 PST

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May. 29, 2009 (China Knowledge) - Haier Group, the fourth largest white goods manufacturer in the world and parent of both Haier Electronics Group Co Ltd<1169> and Qingdao Haier Co Ltd<600690>, on Wednesday announced it will buy a 20% stake in Auckland-based Fisher & Paykel Appliances (F&P Appliances), as per industry sources.

The Chinese company will pay between NZ$80 million and NZ$82 million (US$49 million to US$51 million) for the stake.

According to the agreed plan, Haier will first subscribe 17% of the company shares at NZ$0.80 per share. Existing shareholders will then have the opportunity to subscribe shares at NZ$0.41 per share. After that, Haier will subscribe additional shares to reach 20%.

Investment bank First NZ Capital and Deutsche Bank will underwrite the rights issue.

Haier, which was expected to take a sizeable shareholding in F&P Appliances, was also expected to take possible board representation. In fact, Haier has obtained the right to select two directors.

When Fisher & Paykel on Wednesday announced results for the financial year ending Mar. 31, it also announced, as expected, that it would raise new equity.

According to China Knowledge's earlier report, Haier's global turnover reached RMB 122 billion in 2008, up 8% year on year. Last year, the group's sales in the overseas market increased 9.8% from a year earlier and the total profit surged 20.6% from a year earlier.

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