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Bloomberg
The parent company of Gree Electric Appliances Inc is considering selling almost all of its stake in the Zhuhai-based Chinese appliance giant in a deal that could be worth up to
$6.4 billion.
A 15 percent stake will be sold at a price no less than the average stock price of the last 30 trading days, Gree Electric said in a statement to the Shenzhen stock exchange. The company did not identify the buyer of the stake.
Parent Gree Group held 18.22 percent of Gree Electric as of the end of September, according to data compiled by Bloomberg. At its present valuation of 284 billion yuan, a 15 percent stake in Gree Electric would be worth 42.6 billion yuan. The transaction will lead to a change of ownership in the refrigerators and air conditioners maker and Gree Group is still studying the proposal, said the statement. As Gree Group is controlled by the local government, the deal will require approval from the state assets regulator, it said. Gree Electric is one of China’s biggest appliance makers.
Gree Electric shares will resume trading on Tuesday, after being suspended. Shares were trading at 47.21 yuan when the halt was called. Gree Electric has about 40 percent of the domestic market for air conditioners, according to a research report by China Galaxy International last year. Gree’s main competitors are Midea Group Co and Qingdao Haier Co.