Appliance maker has plans for 'cool' sale
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Home appliance giant Sichuan Changhong is looking to sell two air-conditioner units for 400 million yuan (US$58.58 million), the company said Tuesday.
Analysts said Heifei Meiling Co, a white goods maker Changhong acquired in 2007, may be the buyer.
They said Changhong promised to inject its air-conditioning business into Meiling after the takeover to avoid competition within the white goods business.
Changhong planned to sell 100 percent of Changhong Air Conditioner Co for no less than 290 million yuan and its 90-percent stake in Zhongshan Changhong Electric Appliance for at least 103 million yuan, Changhong said in a statement filed with the Shanghai Stock Exchange.
Buyers must be established for more than three years and have registered capital of at least 400 million yuan, according to the statement.
Qualified buyers could not transfer the assets within five years, it said.
The application has gained the government approval.
"The scheme is likely designed for Heifei Meiling," said Gao Junfang, an analyst with Jiangnan Securities Co.
Officials from Changhong earlier said the company would concentrate its resources to improve its main television business to counter slumping TV sales.
Changhong, starting as a TV maker, posted a plunge of 32.6 percent in January-September profits.
"It will benefit Changhong's profitability," Gao said. "And its advantage in PDP TV and digital TV will be more obvious in the fourth quarter with strengthened efforts."
Sichuan Changhong shares yesterday retreated 1.1 percent to 5.39 yuan, while the Shanghai Composite Index added 0.1 percent.
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