Washing machine producer Wuxi Little Swan Co Ltd (SZA 000418) said its largest shareholder, state-owned Wuxi Guolian Development Group Co Ltd, plans to sell its entire 24.01 pct stake in Little Swan via auction.
Little Swan, in its statement to the Shenzhen Stock Exchange, said the auction will be conducted in compliance with regulations governing the sale of state-owned shares in listed companies, which took effect in July 2006.
Those rules require that a purchaser of state-owned shares in listed companies have at least three years of operating history, with the purchase price not to fall below the 30-day average price before the announcement of the sale.
A-shares of Little Swan last traded at 21.9 yuan on Friday, down 0.68 pct. They were suspended yesterday.
According to media reports last year, Little Swan may be entertaining takeover offers from appliance makers like GE and Guangdong Midea Electric Appliances Co Ltd (SZA 000527).