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.