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Haier reaches 90% of F&P Appliances, will move to acquire rest

Tuesday 6th November 2012

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Haier, the Chinese home appliances manufacturer, has succeeded in reaching 90 percent of Fisher & Paykel Appliances, meaning it can compulsorily acquire the rest and delist the iconic Auckland-based manufacturer from the NZX and the ASX.

Haier's $1.28-a-share offer closes today. It lifted the offer from $1.20 a share to win over fund managers for its proposal. Prior to the offer, F&P Appliances' shares hadn't traded at those levels since September 2008. At the revised offer price, the target company was valued at $927 million.

"We are delighted that a significant majority of shareholders have recognised the value of our offer," said Liang Haishan, president of Haier White Goods Group.

"We look forward to working with Fisher & Paykel Appliances during the next phase of the development, and identifying opportunities for further collaboration between Fisher &Paykel Appliances and Haier and strengthening both brands and businesses," he said.

Haier got Overseas Investment Office approval for the purchase last month. The Chinese company first bought into F&P Appliances in 2009 when the Auckland company was forced to strengthen its balance sheet to keep creditors at bay. Since then the two companies have operated reciprocal marketing arrangements for each other's products in their respective markets.

In August, F&P Appliances forecast a recovery in earnings from its appliances business this financial year because it didn't expect a repeat of last year's hedging losses.

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