Midea to boost its shareholding in Little Swan
Shanghai. May 24. INTERFAX-CHINA - Guangdong Midea Electric Appliances Co. Ltd. (Midea) has received conditional approval from the China Securities Regulatory Commission (CSRC) to acquire 83.4 million additional shares in home appliance maker Wuxi Little Swan Co. Ltd. (Little Swan), according to a joint announcement on May 24.
Midea is an exisitng shareholder of Little Swan.
Midea plans to sell its 69 percent stake in Royalstar Group (Royalstar) Co. Ltd. to Little Swan and use the proceeds to purchase non-public A-share Little Swan stock. Upon completion of the transaction, Midea will hold more than a 30 percent stake in Little Swan's equity interest, the announcement said.
No further terms were disclosed in the announcement.
Midea purchased a 24 percent stake in Little Swan in 2008 to become the latter's majority shareholder.
Midea and Little Swan resumed trading of their respective shares today, after a three day suspension of trading between May 19 and 21. Little Swan's price per share at noon on May 24 was RMB 13.84 ($2.03), up 6.05 percent from the previous day's closing price per share. Midea's price per share was RMB 11.99 ($1.76) at the same time, up 10 percent from the previous day's closing price per share.
-LX