Chinese giant eyes takeover of appliance maker Fisher & Paykel
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Fisher & Paykel Appliances has been approached by Haier relating to a takeover offer, the company confirmed to the ASX today.
White good maker Haier already is a 20% shareholder in Fisher & Paykel, one of the biggest appliance names in Australia.
Haier has indicated it is willing to offer a premium price on F& P’s current share price, which currently stands at $0.74.
Haier approached three of F&P’s biggest shareholders, which include Orbis Investment Management, AMP Capital Investors and Accident Compensation Corp over the weekend in relation to the takeover bid.
However, no formal takeover offer has yet been received, Fisher & Paykel confirmed.
After considering the expression of interest, the company has given details of its updated five year strategic plan and agreed to allow Haier to undertake limited commercial and financial due diligence to help assist it to develop a formal offer.
The board of directors, excluding the two directors associated with Haier, recommends shareholders take no action until full details of the Independent Board’s assessment of the offer, including an independent adviser’s report, is provided.
“There can be no certainty that an offer for shares in Fisher & Paykel Appliances or any other transaction will result,” the appliance giant said today.
In the strategic plan, the giant is aiming for revenue growth of 2-4% by 2017 and to expand its core appliance categories including front loaders, dishwashers, French doors fridges and cooking appliances.
The company also said it remains “acutely aware” of the potential for economic conditions to change suddenly in key markets especially in Australia and the USA.
Fisher and Paykel has forecast full year operating earnings before interest and tax for its Appliance business of $35-$40 million.
Compaay shares soared over 28% on today’s announcement.