Qingdao Haier Co. Ltd.<600690>, China's largest listed home appliance producer, said in a filing with the Shanghai Stock Exchange it has agreed to buy 20.1% stake in Hong Kong-listed Haier Electronics Group Co. Ltd.<1169> at HK$1.975 a share, for HK$775.54 million in cash, from Deutsche Bank AG.

The acquisition, which requires approval from the mainland government and shareholders, is to consolidate the Haier Group's control on its domestic white goods manufacturing assets.

Both Qingdao Haier Co. Ltd. and Haier Electronics Group Co are subsidiaries of the Haier Group, a home appliances giant in China.

Qingdao Haier manufactures refrigerators, freezers, air conditioners, dishwashers, microwave ovens, gas stoves, washing machines and other household electrical and electronic appliances.

In 2007, Qingdao Haier's net profit climbed to RMB 643.63 million and turnover rose to RMB 29.47 billion, representing a year-on-year rise of 15.74% and 26.94% respectively. Net income soared 32% year-on-year to RMB173.03 million in the first quarter this year.

Haier Electronic's washing machines and water heaters businesses posted net profit of HK$272 million and HK$86.4 million respectively in 2007.

Deutsche Bank bought its Haier Electronics stake from CCT Telecom Holdings<138> for HK$558 million in 2005.

Source:China Knowledge