China's Haier bids for NZ's Fisher & Paykel

WELLINGTON -- Chinese electrical appliance giant Haier Tuesday officially made an offer for a full takeover of one of New Zealand's oldest and most reputable whiteware manufacturers.

Fisher & Paykel Appliances Holdings Ltd issued a statement saying it had received a takeover notice from Haier New Zealand Investment Holding Co Ltd, a wholly-owned subsidiary of Haier (Singapore) Management Holding Co, which has a 20-percent stake in FPA.

Haier's notice stated that it intended to make a full takeover offer for all of the ordinary shares in FPA not already held by Haier at an offer price of NZ$1.20 (97 US cents) per share in cash.

The offer was subject to conditions, including Haier receiving acceptances that would result in it holding or controlling more than 50 percent of the voting rights in FPA and that it would obtain all consents required under New Zealand's Overseas Investment Act 2005 and Overseas Investment Regulations.

The notice also contained a list of intentions, which included support for FPA's current business strategy and the retention of the company's brands and businesses in New Zealand, Australia and the United States.

The FPA independent board, which excludes the two directors associated with Haier, recommended that FPA shareholders take no action until it issued an assessment of the offer with an independent advisor's report.

The independent board was supportive of Haier's offer if the offer price were within or above the valuation range as determined by the independent adviser and the terms and conditions were acceptable, said the statement.

Haier's takeover notice said it had entered a lock-up agreement to buy Allan Gray Australia's entire 17.46-percent shareholding in FPA, giving Haier a stake of 37.46 percent.

The Fisher & Paykel Appliances share price on the New Zealand Stock Exchange closed 7 NZ cents up at 1.04 NZ cents per share on Tuesday.

Fisher & Paykel shares plunged to 36 NZ cents a share earlier this year on the back of falling profits and poor sales, but the company has managed to pare back debt and stage a recovery.

Established in New Zealand in 1934 and first listed in 1979, the company has manufacturing plants in New Zealand, Italy, Thailand and Mexico. Haier took a 20-percent stake in 2009.