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)
