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Hisense grabs Kelon in white-hot bidding war
By Hu Yuanyuan (China Daily)
Updated: 2005-09-12 05:44
Hisense, one of China's leading white goods manufacturers, has signed an agreement with Kelon's chairman, and bought a 26.43 per cent stake at the cost of 900 million yuan (US$111 million), Xinhua News agency has reported, citing a top managerial source.
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| Hisense, one of China's leading white goods manufacturers, has signed an agreement with Kelon's chairman, and bought a 26.43 per cent stake at the cost of 900 million yuan (US$111 million). [newsphoto] |
Gu Chujun, the chairman of Beijing-based Greencool, as well as Guangdong Kelon Electrical Holdings Co, agreed to transfer Greencool's stake in Kelon to Hisense on Friday, the top manager disclosed.
Despite corporate scandals, dubious dealings, plunging sales and millions reportedly embezzled, a number of investors lined up to take control of crisis-ridden Kelon, the renowned maker of refrigerators and air-conditioners.
A dozen leading electrical appliance firms from home and abroad including Hisense, Midea and Electrolux have been queuing up to take over Kelon. Hisense finally won out.
"It is really a good buy," said Dong Chen, an analyst with China Securities. "Its brand name and marketing channels are particularly attractive to potential buyers, especially in the electrical appliance industry, where competition is red-hot."
More importantly, Kelon fell into dire straits not because of its product line or marketing skills but because of its controversial chairman, Gu Chujun, who was detained in early August on suspicion of economic scandals. Five of its senior executives are also being held.
Dong says: "Kelon is a good company, but it chose a bad investor."
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