Reuters: Global Markets: New Zealand's F&P sees interest after Haier takeover offer

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New Zealand's F&P sees interest after Haier takeover offer Sep 12th 2012, 02:03 WELLINGTON | Tue Sep 11, 2012 10:03pm EDT WELLINGTON (Reuters) - New Zealand kitchen appliance maker Fisher and Paykel Appliances Holdings Ltd FPA.NZ has been approached by firms interested in buying some of its divisions after Chinese white-goods maker Haier Group offered to take over the entire company. Shares in F&P Appliances jumped to a four-year high of NZ$1.175 ($0.96) on Wednesday after Haier offered NZ$869 million to take over New Zealand's largest appliance maker, putting its market capitalization around NZ$850 million. Haier, parent of Qingdao Haier Co Ltd (600690.SS) and Haier Electronics Group Co Ltd (1169.HK), said late on Tuesday that it had offered to pay NZ$1.20 a share in cash for a full takeover, a 2.5 percent premium on its current price. Haier already owns 20 percent of F&P. "It's a reasonable offer," said Shane Solly, portfolio manager at Mint Asset Management in Auckland. "The intellectual firepower and the engineering prowess that the Fisher and Paykel team have had for a long time has significant value to a large manufacturer such as Haier." F&P disclosed earlier this week that Haier had approached certain shareholders about purchasing their stakes, and F&P Chairman Keith Turner on Wednesday said other companies had since shown interest in the firm's divisions. In addition to producing refrigerators, washing machines and double-door dishwashers, F&P also manufactures automated production equipment, and has a consumer finance arm. "Now that the takeover statement has been made, we have had some responses from parties interested in various parts of Fisher and Paykel," Turner said on Wednesday, while declining to give details. Haier has indicated that it could sell the profitable consumer finance division if the takeover is approved. HAIER BRANCHES OUT The New Zealand deal is seen as a bid by Haier to reduce its reliance on a slowing domestic economy, and as a tempting offer for F&P's shareholders at a time when demand is slowing for its products. It would also strengthen Haier's overseas presence. F&P controls up to 20 percent of the Australian white-goods market, while it dominates the New Zealand market. Roughly half of F&P's production is sold in Australia and 25-30 percent in New Zealand, with the remainder going to the United States, Europe, Britain, the Middle East and Singapore. F&P has said the offer has the support of fund manager Allan Gray, its second-largest shareholder which owns 17.5 percent of the company. Haier's first overseas foray was a failed attempt in 2005 to buy U.S. white-goods maker Maytag after teaming up with Bain Capital and Blackstone Group LP (BX.N). Washington D.C.-based Carlyle Group LP (CG.O) agreed in 2011 to buy 9 percent of Haier's Hong Kong-listed unit, investing up to $194 million through convertible bonds. Carlyle's investment provided capital for Haier's expansion plans and emerged just days after Haier decided to buy Panasonic Corp's (6752.T) Sanyo Electric washing machine and refrigerator units in Japan and Southeast Asia for $130 million. F&P had been hit by the global credit crisis and slow demand aggravated by a high New Zealand dollar. Some analysts said the company had turned a corner in the past year and faced a strong outlook. F&P has moved most of its manufacturing to low-cost Mexico and Thailand. The offer comes as China's home appliance makers are grappling not only with reduced demand, but also intensifying competition from local and foreign brands that have hurt their bottom lines and prompted them to seek new avenues to spur growth. ($1 = 1.2233 New Zealand dollars) (Reporting by Naomi Tajitsu; Editing by Chris Gallagher) Link this Share this Digg this Email Reprints

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