Haier signals possible takeover of F&P Appliances

One of New Zealand's oldest and most reputable whiteware manufacturers announced Monday that Chinese electrical appliance giant Haier is considering a full takeover of the company.

Fisher & Paykel Appliances Holdings Ltd. issued a notice to the New Zealand Stock Exchange saying it had been approached by Haier, which already has a 20 percent stake in the company, expressing an interest in making a takeover.

Haier had indicated a potential cash offer price that would "represent a premium to Fisher & Paykel Appliances' current share price, if an offer were to be made," said the statement.

Fisher & Paykel Appliances had received no takeover offer, but Haier had approached three of its largest shareholders regarding the possible takeover bid.

Haier had asked to undertake limited commercial and financial due diligence to assist it in developing a complete proposal, it said.

If Haier did make an offer, the Fisher & Paykel independent board of directors, which excludes the two directors associated with Haier, would recommend that shareholders take no action until if carried out and assessment of the offer with an independent advisor.

Fisher & Paykel Appliances' share price rose 21.5 NZ cents (17 U.S. cents) to 96.5 NZ cents per share on Monday following the announcement.

On the Australian Stock Exchange, the company's shares were up 17 AU cents (18 U.S. cents) to 96.5 AU cents.

Fisher & Paykel shares plunged to 36 NZ cents a share earlier this year on the back of falling profits and poor sales.

Established in New Zealand in 1934 and first listed in 1979, the company has manufacturing plants in New Zealand, Italy, Thailand and Mexico.

Haier announced it would take a 20-percent stake in 2009.