New Zealand deal bolsters Haier's technological edge

The Chinese appliance maker Haier Group said on Thursday it will take a majority stake in the New Zealand-based Fisher and Paykel Appliances Ltd.

Haier, which already owns 20 percent of the New Zealand laundry and kitchen appliance maker, raised its offer by 6.7 percent to NZ$1.28 ($1) a share, a price which values the company at about NZ$927 million.

The decision was intended to bolster Haier's technological strength and reduce its reliance on the Chinese market, although it was not immediately clear how large of a stake the company will acquire. Haier is the parent of Haier Electronics Group Co Ltd and Qingdao Haier Co Ltd.

Fisher & Paykel Appliances recommended that its shareholders accept the new offer even though the price came toward the bottom end of an independent valuation that put the company as being worth between NZ$1.28 to NZ$1.57 per share.

China Daily-Agencies