Hisense Proposes Kelon Restructuring Oct 19, 2005

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Qingdao Hisense Air-Conditioner Co. Ltd. wants to restructure Guangdong Kelon Electrical Holdings Co. Ltd., according to a report from Shenzhen Daily. Hisense proposed a restructuring of its assets that include the Kelon appliance business.

In a proposal posted to the Shenzhen Stock Exchange Web site, Hisense would transfer its air-conditioning operations to Kelon, while Kelon would move the assets for its appliance and molding manufacturing to Hisense. Kelon was no yet in discussions with Hisense about the proposed swaps.

Last month, Hisense's air-conditioning business took over a large stake in Kelon, which was troubled this year by accusations of fraud by top-level executives and by manufacturing shut-downs that resulted from the investigations.

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