(Yicai Global) June 1 -- Sichuan Changhong Electric Co. [SHA:600839], controlling shareholder of Chinese home appliance maker Hefei Meiling Co. [SHE:000521], plans to increase its holdings in the company by up to 1 percent of the firm's total issued share capital, the latter said yesterday. The statement did not confirm the exact amount of the increase.
As of March 31, Sichuan Changhong held 235 million shares in Meiling Electrical Appliance, making up nearly 22.5 percent of its total market cap, data from the target company shows. The Sichuan-based company said it was increasing its holdings to maintain control over the appliance maker.
In 2007, Sichuan Changhong bought nearly 83 million shares in Meiling Electrical Appliance to enter the household appliance sector. Since then, it has repeatedly increased its holdings to strengthen its control over the firm. In 2015, it bought over 68 million non-public issued shares for CNY390 million (USD57 million) to help Meiling raise funds for intelligent manufacturing projects.