Appliance maker Sichuan Changhong Electrical Co yesterday bid
for a 29.92-percent stake in Huayi Compressor Co to expand its
business.
The TV company said in a statement to the Shanghai Stock
Exchange yesterday that it would acquire 91.7 million shares from
Huayi's parent Huayi Electrical Appliance General Co via an
auction.
The Jiangxi-based Huayi, which produces compressors for air
conditioners and refrigerators, was suspended from trading in the
Shenzhen stock market since December 14 when it announced the
auction plan.
The 91.7 million shares are valued at 956 million yuan (US$129
million) based on its closing share price of 10.42 yuan per share
on December 13.
Changhong wasn't traded yesterday, and its closing price on
Friday was 8.45 yuan. Share price of the Shanghai-listed company
has doubled this year.
Changhong's net profit in the first nine months of this year
totaled 340 million yuan, jumping 39 percent from a year earlier on
the booming electronics market.
(Shanghai Daily December 25, 2007)
