F&P Appliances: Haier to take control
Having snapped up 92.8 percent of F&P Appliances, Haier will buy out the remaining minority shareholders to complete the NZ$927 million ($766 million) takeover. Once it acquires the shares, one of New Zealand's most recognised brands will be delisted from the domestic stock exchange.
Haier is paying NZ$1.28 a share for F&P Appliances, having sweeted its initial offer of NZ$1.20 last month.
The move marks the second major takeover in as many years for the parent of Qindao Haier Co Ltd, China's No. 2 appliance maker by sales, as it is looks overseas for new revenue sources in the face of sluggish demand and increased competition at home.
Last year, Haier bought Panasonic Corp's Sanyo Electric washing machine and refrigerator units in Japan and Southeast Asia for $130 million.
The latest acquisition will give the Chinese company the development expertise behind F&P Appliances' multi temperature refrigerators and double-drawer dishwashers. Some analysts said it would take time for the takeover to bear fruit for Haier, given the limited size of F&P Appliances' sales networks. Roughly 75 percent of its production is sold in Australia and New Zealand.
From the listed companies' point of view, even though they can sell their products (in New Zealand) through Fisher's sales network, Fisher's market may not represent a big market for
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