Global Supplier Directory
Supplier Solutions
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center

Daily News

China Haier Takes Over Haier-CCT
Apr 7, 2004
 Printable format
 Email this Article

Haier-CCT Holdings Ltd. said it will buy from China's Haier Group a washing machine business and its stake in a mobile handset joint venture for a total consideration of about HK $1.50 billion in cash, shares, and bonds.

Haier-CCT said it would pay about HK $1.03 billion (approx. U.S. $166.76 billion) in new shares, convertible bonds, and cash to the Qingdao city-based Haier for the washing machine business. The Hong Kong-listed firm will also issue new shares worth HK $468.6 million to buy out Haier's 35.5-percent stake in a handset joint venture, lifting its ownership of the business to 100 percent from the current 64.5 percent.

The news drove down Haier CCT shares in a market that was rising, as investors took profit on the shares, which had been suspended for a month.

"Investors were taking profit, since the shares have gone up a lot," said Kenny Tang, research director at Tung Tai Securities. "On top of that, investors were worried that the issue of new shares at such a big discount would be dilutive."

The completion of the deal will reshuffle the shareholding structure of Haier-CCT, with Haier replacing CCT Telecom Holdings Ltd. as the controlling shareholder in the Hong Kong company.

Haier's stake in Haier-CCT will increase to 57.3 percent following the new share issue and to 60.7 percent after the full conversion of the bonds into new shares, from the existing 29.9 percent. CCT Telecom's interest will eventually be diluted to 24.5 percent from 43.6 percent currently, and reduce the public float to only 14.1 percent from the original 25.26 percent.

Following the deal, Haier-CCT will be renamed Haier Electronics Group Co. and seek a new listing status.

It will also become the overseas anchor unit of Haier, China's leading maker of household electrical appliances, which said it is likely to inject additional assets into the Hong Kong firm.

Haier-CCT will also become the organization's listed flagship. "Our intention is that Haier-CCT will become the listed flagship of Haier Group in the research, development, manufacturing and selling of white goods," Haier President Yang Mianmian said in a statement. "Looking ahead, we intend to inject the remaining white goods business into Haier-CCT."

Those businesses include the manufacture of air-conditioners, refrigerators, freezers, and front-loading washing machines, including Haier's interest in domestic A share-listed assets currently traded on the Shanghai stock exchange.

Meanwhile, Haier-CCT will pay HK $724.8 million for the dryers and spinners washing machine division by issuing new shares at 18 HK cents per share and issuing HK $260 million in bonds convertible into new shares at the same price. It will settle the balance of HK $50 million in cash. (Dow Jones)

Back to Daily News


Daily News


Dec 19, 2014: Whirlpool Corp. provides guidance for 2015

Dec 19, 2014: Panasonic to showcase built-in appliances at LivingKitchen 2015

Dec 19, 2014: New residential construction in November 2014

Dec 19, 2014: 2014 U.S. steel production up 0.7% from 2013

Dec 19, 2014: Strong North American PCB Order Growth in October

More Daily News>>

RSS Feeds
Appliance Industry
Market Research


November 2014: Appliance Magazine Market Insight Annual Subscriptions
November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC

Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows