Midea Group to merge with laundry machine maker Little Swan
Midea Group shares to be issued to A and B shareholders in Little Swan in a deal estimated to be worth 14.38 billion yuan
Chinese electrical appliance manufacturer Midea Group is planning to issue shares to complete a merger with laundry equipment manufacturer Little Swan in a deal estimated to be worth 14.38 billion yuan(US$2.07 billion), Yicai.com reported.
Midea Group will issue shares to all A and B shareholders in Little Swan, with the exception of TITONI, which is a wholly-owned subsidiary of Midea Group.
The conversion price for Little Swan’s A shares is 50.91 yuan per share, and HK$48.41 per B share. Thus, every A share of Little Swan will be exchanged for 1.211 shares of Midea, while every B share will be transformed into 1.0007 Midea shares.
After that, the Little Swan will withdraw from the market.
Midea Group is transforming into a multinational technology group covering four major businesses: HVAC, consumer electronics, robotics and automation, and intelligent logistics. The merger will be beneficial to Midea’s strategy of “smart manufacturing + smart home.”