Whirlpool China Rallies on Galanz's USD355.6 Million Offer for Discounted 61% Stake
Liao Shumin
DATE:  Aug 26 2020
/ SOURCE:  Yicai
Whirlpool China Rallies on Galanz's USD355.6 Million Offer for Discounted 61% Stake Whirlpool China Rallies on Galanz's USD355.6 Million Offer for Discounted 61% Stake

(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
 

 

 

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Keywords:   Whirlpool,Galanz,Tender Offer,White Goods,China