Slow cycle

17 December 2019 By Pete Sweeney Follow @petesweeneypro

The world’s top appliances maker wants to take an $8 bln subsidiary private via share swap. The deal would streamline the group’s structure and free up $2.4 bln in cash for the indebted parent to play with. For all these neat benefits, shareholders could demand a premium price.

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Haier, the world's biggest maker of household appliances, is mulling a major restructuring that will see its main unit Haier Smart Home list in Hong Kong, then take subsidiary Haier Electronics private via a share swap, Reuters reported on Dec. 12 citing two people with direct knowledge of the matter.

In a statement responding to the Reuters report, Haier Smart Home said it is “exploring a proposal” to privatise Haier Electronics via a securities exchange facilitated by the issuance of new shares in Hong Kong. It said no agreement has been made so far.

Shares of the Hong Kong-listed Haier Electronics Group opened up 13% to HK$24.70 on Dec. 17, after trading was halted on Dec. 13.

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