Shares of Haier-CCT Holdings, a joint venture between Haier, the mainland’s largest whitegoods manufacturer, and Hong Kong’s CCT Telecom, are likely to remain suspended today.
Haier is still processing its application to the stock exchange to inject its assets into the main board-listed company, a source said. Haier-CCT has been suspended since March 8.
The backdoor listing would likely see Haier putting its washing machine business into Haier-CCT, beefing up its near 30 per cent interest in the joint venture to a majority stake.
This would reduce CCT Telecom’s existing 43.6 per cent stake in the venture, leaving it no longer the single biggest shareholder in the company. The Financial Times reported yesterday that the reverse takeover is likely to see Haier-CCT paying for the assets in an all-share deal worth US$200 million (HK$1.56 billion).
CSFB and Deutsche Bank are reportedly the advisers for the deal.
It is understood that following the washing machine business, Haier will inject the other household electronic businesses held by its 40 per cent-owned A-share-listed Qingdao Haier into Haier-CCT.
Haier’s plan to inject its businesses into Haier-CCT was outlined in a company statement published on its website in February 2003. Haier said at the time the deal was awaiting regulatory approval in the mainland.
For the first half ended June 2003, Haier-CCT reported a net loss of HK$84.54 million, worsening from HK$3.14 million a year earlier.
Haier-CCT focuses on the manufacture and distribution of mobile phones – its sole revenue source. The mainland feeds the bulk of its sales, fuelling 72 per cent of its HK$741.28 million top line for the six months.
From The Standard