KKR buys 10% stake in China home appliance maker for $552m

According to a filing, QH is selling 299.5 million shares at RMB11.29 each to KKR in a private placement, a 15% discount on the September 12 closing price, the last day before QH suspended trading prior to announcing the deal.

Founded in 1989, QH manufacturers refrigerators, washers, air-conditioners and water heaters and has been listed on Shanghai Stock Exchange since 1993. As of June this year, QH had 2,695,909,540 outstanding shares with $8.85 billion total assets and $2.01 billion shareholder's equity. The company achieved $13.05 billion in sales and $534 million net income in 2012.

"We look forward to fully utilizing KKR's global resources and local expertise to assist Qingdao Haier in its next phase of growth by capitalizing on the opportunities created by China's continued urbanization and increasing consumer income trend, while also accelerating its international expansion" David Liu, CEO of KKR Greater China, in a statement.

The transaction is subject to customary regulatory and shareholder approvals. KKR continues to be bullish on in Asia having recently closed its second Asia fund at $6 billion - the largest private equity pool ever raised in the region. 

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• Topics
• Greater China
• Consumer
• KKR
• China
• Consumer
• Growth capital