(Yicai Global) Aug. 26 -- Shares of Whirlpool China surged after the Chinese unit the US white goods maker said that microwave oven manufacturer Galanz Group would pay CNY2.4 billion (USD355.6 million) for a discounted majority stake.
Whirlpool China's stock price [SHA: 600983] climbed by the daily limit of 10 percent to CNY6.96 (USD1) this morning, representing a 33 percent premium to the offer. The shares have been suspended for two days before today as the company revealed that it has received a tender offer on Aug. 23, without disclosing the price.
Galanz would buy 4.7 million shares, or a 61 percent stake, the Hefei-based target firm, that has been probed by the main securities regulator for accounting violations in recent years, said in a statement yesterday. The price would be CNY5.23 apiece. That is 17 percent less than the stock's closing price on Aug. 21.
Currently, Michigan-based Whirlpool's unit Whirlpool China Investment has 51 percent of the target firm's shares. The Shunde-based buyer would accept no less than 51 percent of Whirlpool China's outstanding equity, the statement added.
Editor: Emmi Laine