M&A

17 November, 2009

China's No.3 refrigerator maker up for sale -source

HONG KONG, Nov 18 (Reuters) - Hong Leong Group (HLAA.SI), owned by Singapore billionaire Kwek Leng Beng, is considering selling its 90 percent stake in Xinfei, China's No.3 refrigerator maker by market share, in a deal that could fetch more than $700 million, a source with direct knowledge of the plan said on Wednesday.

Hong Leong has hired a major international investment bank to explore strategic options for Xinfei and Hong Leong may sell its stake in Xinfei to a strategic buyer, said the source who declined to be identified as the process is confidential.

The potential sale of Xinfei is expected to draw interest from international and Chinese home appliance business leaders such as Japan's Panasonic Corp (6752.T) and Haier Group, a strong domestic competitor of Xinfei, said the source.

Hong Leong and Xinfei both declined to comment. (Reporting by George Chen in Hong Kong; Additional reporting by Kevin Lim in Singapore and Samuel Shen in Shanghai; Editing by Jacqueline Wong)

Source: http://www.reuters.com