(Shanghai Daily)
Updated: 2007-12-26 11:25

China's air conditioner giant Midea Electric Appliances will acquire four companies from its parent Guangdong Midea Group to expand capacity and business.

The company's shareholder board on Monday approved its proposal to pay 480 million yuan ($65 million) for a 100-percent stake in Hefei Hualing Electrics Co Ltd, Guangzhou Hualing Air Conditioning & Equipment Co Ltd and a 95-percent stake in China Refrigeration Industry Co.

It also plans to spend 31 million yuan to acquire a 30-percent stake in Chongqing Midea General Refrigeration Equipment Co from its parent company, the country's largest air conditioner maker told Shenzhen Stock Exchange yesterday.

Hong Kong-listed Hualing Holdings Limited, which lost HK$372.02 million in 2.5 years through June 30, deals in selling household electrical appliances such as air conditioners and refrigerators with its subsidiaries.

"The acquisition won't benefit Midea a lot based on Hualing's assets. Midea may target Hualing's listed arm in Hong Kong and expect to inject its own assets into the shell," said Zhou Jin, an analyst with Guangfa Securities.

Midea's first-half net income expanded 113.88 percent to 710.48 million yuan and its revenue reached 19.05 billion yuan in the first six months, compared with 12.49 billion yuan a year earlier.