Haier Electronics Shares Gain 9.4% on Plans to Privatize
Liao Shumin
DATE:  Dec 18 2019
/ SOURCE:  yicai
Haier Electronics Shares Gain 9.4% on Plans to Privatize Haier Electronics Shares Gain 9.4% on Plans to Privatize

(Yicai Global) Dec. 17 -- Haier Electronics Group's shares jumped 9.4 percent after trading in the stock resumed today as the home appliance maker said its controlling shareholder Haier Smart Home may take it private.

The Hong Kong-based company's stock price [HKG:1169] closed at HKD26.20 (USD3.36), after surging earlier in the day as much as 20 percent.

Trading had been suspended since Dec. 13, apparently due to an internal reorganization as parent firm Haier Group considers listing Haier Smart Home in Hong Kong and in turn taking Haier Electronics private in a move to streamline its overseas operations, according to reports in the overseas press.

The privatization plan may be a securities exchange offer paid for through so-called H shares raised by a possible listing of Haier Smart Home in Hong Kong, Haier Electronics said in a statement made through the Hong Kong Stock Exchange.

Qingdao-based Haier Smart Home, which owns 57 percent of Haier Electronics, has not committed to carry out the privatization and has given no further details including the share conversion ratio and timetable, according to the statement.

Haier Electronics is mainly involved in the development and manufacture of washing machines, water heaters and water purifiers that it sells under the umbrella of Qingdao-based Haier Group.

Haier Smart Home has a wider product range that includes refrigerators, washing machines, air conditioners, water heaters, kitchen appliances and smart home products. Its shares [SHA:600690] fell 0.5 percent to close at CNY18.66 (USD2.66).

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Keywords:   Haier Electronics Group