GD Midea Holding Co had recently announced plans to purchase the listed company. This resulted in an increase in share values on the Shenzhen trading floor.
The Midea Group, the parent company of GD Midea Holding Co, is taking its subsidiary private and would put the whole group for public listing thereafter. The group owns 41% of GD Midea would offer 15.96 yuan per share through a stock swap program. The price of the group shares offer a 74% premium over the share value of the subsidiary.
The transaction details include GD Midea stockholders getting 0.3582 shares of Midea Group stocks for every GD Midea share of stock according to its filed documents.
The company was established by billionaire tycoon He Xiangjian. Midea Group net income fell 6.1% in 2012 to just 3.26 billion yuan or US$525 million. Midea Group income is forecasted to increase to 4.42 billion yuan in 2013.
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