Gree Electric Management May Buy 15% Stake From Zhuhai Government

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING: Beijing to Impose Sweeping Drone Sales Ban From May 1; Insta360 Profit Falls as R&D Surge Meets Rising DJI Competition

LATEST: Insta360 Profit Falls as R&D Surge Meets Rising DJI Competition; Beijing to Impose Sweeping Drone Sales Ban From May 1; Lightelligence Sets Record IPO Gain with 383% Surge on Hong Kong Debut; Robot Era Raises Over $200 Million as Humanoid Robot Race Heats Up; DeepSeek Launches New AI Model as Funding Rumors Spread; Tencent Unveils New AI Model to Close Gap With Rivals; DJI Enters Heavy-Lift Drone Market With 200-Kilogram Payload Models; Apple Supplier Dongshan Precision Rallies on AI-Driven Demand; Horizon Robotics Unveils 5-Nanometer Integrated Auto Chip; In Depth: China’s AI Hiring Boom Belies a Struggling Job Market; China Unveils AI-Driven Plan to Build $14 Trillion Service Sector by 2030; X Square Robot Raises New Funds, Targets Home Trials by May; Computing Shortage Forces Chinese AI Firms to Ration Services; Moonshot AI Launches New Model With Improved Coding and Agent Capabilities; Chinese Firm Uses Employee Data to Build AI Worker, Stoking Job Security Debate; China’s Sunrise Raises Over $140 Million for AI Inference Chip Push; ByteDance’s Profit Plunges 70% on Aggressive AI Spending; Chinese-Built Robot Wins Beijing Half-Marathon; Chinese AI Robotics Startup TARS Raises $455 Million in Record Pre-A Round; Zhipu Acquires $53 Million Beijing Office as AI Operations Expand

By Peng Yanfeng, Wang Xiaoshan and Han Wei / Apr 09, 2019 05:58 AM / Business & Tech

Photo: VCG

The state-owned controlling shareholder of Gree Electric Appliances Inc. plans to sell a major portion of its holdings in a deal that could lead to an ownership shakeup in the Chinese appliance giant.

Zhuhai city government-backed Zhuhai Gree Group Co. Ltd., which holds 18.22% of the Shenzhen-listed company, will put 15% of Gree Electric up for sale, according to a regulatory filing Monday. The stake could be worth at least 41 billion yuan ($6.1 billion), based on the company’s market value. The deal will require approval from the state assets regulator.

A person close to Gree Electric told Caixin that company Chairwoman Dong Mingzhu and her management team have a “strong intention” to buy the stake. Dong holds 0.74% of Gree Electric as the 10th-largest shareholder.

The city government and Zhuhai Gree have been in talks with Dong on the potential stake sale since early 2018, the person said.

Gree Electric first unveiled the possible ownership change last week in a statement with the Shenzhen Stock Exchange. The company’s stock, which was suspended last Monday, will resume trading Tuesday.

Share this article

Open WeChat and scan the QR code