(Yicai Global) Sept. 21 -- China's leading air conditioner producer Gree Electric Appliances Inc. of Zhuhai [SHE:000651] has gradually increased its shareholding in Shanghai Highly Group Co. [SHA:600619], a refrigerating compressor developer operating in the secondary market, over the past month, the former said in press briefing on Sept. 20.

Gree bought a total of 43.315 million shares in Highly through centralized price bidding between Aug. 29 and Sept. 19, bringing its stake to five percent of the firm's general capital. It did not hold any Highly shares prior to Aug. 29, it said.

Gree's actions are driven by its confidence in Highly's future business and its recognition of the firm's value, the statement read. Gree did not rule out the possibility of increasing its holding in the next 12 months.

The buyer did not reveal the total cost of the deal but said that the trading price varied between CNY11.64 (USD1.77) to CNY15.45.

Gree is now reportedly the third largest shareholder in Highly. Its largest shareholder is multinational power generation firm Shanghai Electric Group Co. [SHA:601727] with a 20.22-percent stake.

Shanghai's State-owned Assets Supervision and Administration Commission previously canceled plans to negotiate the transfer of Highly's control rights due to unfavorable conditions. Gree immediately increased its shareholding in the firm after trading resumed on Aug. 29.

"Highly has always been our supplier and we will engage in a deal if they still plan to change their controlling shareholder," a Gree insider said. "For now, we've decided to buy in via the secondary market."

Highly owns four major businesses engaged in air conditioning compressors, electrical machinery, drive controls, and products related to cooling or warming units. Its subsidiary Shanghai New Energy Technology Co. is currently developing integrated electric-drive scroll compressors for vehicles, a major component for new-energy auto manufacturers in China.