Haier to Acquire 20% of F&P Shares May 29, 2009

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Haier’s acquisition of Fisher & Paykel shares is part of F&P's recapitalization package that also includes NZ$575 million in new credit lines, the company said. F&P said that the net proceeds from the capital raising are to be used to reduce debt of the company's appliance business, other than NZ$15 million which will be applied as equity to the company’s finance business.

In addition, will take two seats on F&P’s board following the investment, which means that Haier will have a 20% stake in F&P. The companies also said they would cooperate in product development, sourcing, manufacturing, and marketing.

Under the alliance, the companies gain exclusive distribution rights for each other’s products in their respective home markets. They also agreed to use each others’ factories to make each other's branded products.

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