A stake sale in home appliance giant Gree Electric Appliances is likely to turn into a heated competition.
One month after Gree Electric’s state-backed controlling shareholder Zhuhai Gree Group announced a plan to sell a 15% interest in the company, 25 potential bidders gathered Wednesday at Gree Electric’s headquarters in Zhuhai for a briefing on the deal.
Deep-pocketed investors including Singapore’s Temasek Holdings, Chinese private equity firm Hopu Investments, Hillhouse Capital Group and tech giant Baidu Inc. were among the participants.
The deal could amount to more than 40 billion yuan ($5.79 billion), based on Gree Electric’s current market value. In 2018, Gree Electric reported 198 billion yuan of revenue and 26 billion yuan of net profit.
Caixin learned earlier that Dong Mingzhu, Gree Electric’s powerful chairwoman, was also interested in buying the stake.
Gree Electrics said it is still studying detailed plans for the stake transfer, which will be subject to review by the state asset regulator.
Related: Exclusive: Private Equity Firm Hopu May Bid for Gree Stake