BIZCHINA / Zhang Ruimin
Stake sale helps Haier shares soar
(China Daily)
Updated: 2005-11-24 14:12
Deutsche Bank earned a quick paper gain yesterday after its purchase of
24 per cent stake in Haier Electronics Group Co Ltd for US$71.5 million
from another company sent shares in Hong Kong-listed Haier surging by
about 30 per cent.
The German lender declined to comment on its plans for its stake in Haier
Electronics, which is a unit of Qingdao Haier, China's largest white
goods maker.
Deutsche bought the stake from Hong Kong-based CCT Telecom Holdings Ltd,
which sold its entire shareholding.
Haier Electronics said in a statement that Deutsche Bank had also agreed
to buy put warrants from Qingdao Haier that allow it to sell the shares
either in the market or to the parent firm.
The warrants have a three-and-a-half year term and cost Deutsche Bank
HK$0.03 each, or HK$118 million (US$15 million). They can be exercised
after two-and-a-half years and can be transferred at any time, according
to a CCT statement.
Qingdao Haier, which in recent years undertook a series of steps to gain
its so-called back-door Hong Kong listing, would see its stake in Haier
Electronics rise to 74.17 per cent from the current 50.19 per cent if
Deutsche Bank's warrants were fully exercised.
Deutsche Bank paid HK$0.142 apiece for the Haier Electronics shares, a
premium of 2.8 per cent over their last closing price before they were
suspended from trading on November 17.
Haier Electronics shares rose by as much as 39 per cent early yesterday,
and later traded at HK$0.179, an increase of nearly 30 per cent, giving
it a market value of about US$376 million.
CCT Telecom shares, which also resumed trade after being suspended on
November 17, were up by 10.4 per cent at HK$1.06.
CCT Telecom said it would use its net proceeds of HK$550 million from the
stake sale for general working capital.
(For more biz stories, please visit Industry Updates)
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20071121-Hedy Extracted From http://www.learnchinese.bj.cn
