China's Haier makes takeover bid for NZ firm

BEIJING - Chinese home appliance giant Haier Group has made a full takeover offer on New Zealand's Fisher & Paykel Appliances, highlighting a recent buying spree by Chinese companies seeking to expand in overseas markets.

Haier, which already owns 20 percent of Fisher & Paykel, New Zealand's largest home appliance maker by market size, is offering 1.2 New Zealand dollars ($0.98) per share for the remaining 80 percent of the company, according to a statement released by Haier late Tuesday.

Haier is estimated to pay a total of 3.6 billion yuan ($568.23 million) to complete the deal. The offer, which was made through Haier's New Zealand subsidiary, will be formally launched within the next 14 to 30 days, the statement said.

Haier has reached a lock-up agreement for the 17.46-percent stake held by Allan Gray Australia Ltd, the next largest shareholder after Haier, according to Yuan Haoran, a home appliances analyst from China Galaxy Securities.

Fisher & Paykel, listed both in New Zealand and Australian exchanges, soared 7.22 percent to close at 1.04 New Zealand dollars in its home market on Tuesday.

The move will facilitate Haier's efforts to localize research and development, as Fisher & Paykel has high-level research and development capabilities, according to Liang Haishan, Haier's executive vice president in charge of white goods business.

Liang said Haier will maintain the independent operation and local management team for Fisher & Paykel, and will continue to develop the company's brands and businesses.

Established in 1934, Fisher & Paykel currently has manufacturing plants in New Zealand, the United States, Italy and Thailand, with an annual output of 1.2 million home appliances. The company's business revenues hit 1.04 billion New Zealand dollars for its 2012 financial year.

Haier, which has more than 80,000 employees worldwide, saw its global business revenues grow to 150.9 billion yuan last year. It bought a 20-percent stake in Fisher & Paykel in 2009.