Guangdong Midea Electric Appliances Co Ltd (SZA 000527) is expected to take a further stake in Wuxi Little Swan Co Ltd from Wuxi Guolian Development Group Co Ltd, Little Swan’s biggest shareholder, the Economic Observer reported, citing sources close to the matter.
The report did not give the size of the stake Midea will buy, but added the deal is worth 1.6 bln yuan
According to Midea’s half-year report, a wholly-owned investment unit currently holds 18 mln B-shares of Wuxi Little Swan, accounting for a 4.93 pct stake.
China’s second biggest domestic white goods manufacturer, Midea reported sales of 55 bln yuan in 2006.