(Adds quotes, market price)
* Haier lifted offer to NZ$1.28, bottom of adviser range
* Investment funds accept offer, giving Haier control
* Sweetened offer values company at $760 milllion
* Deal beefs up Haier technology, reduces reliance on China
By Naomi Tajitsu
WELLINGTON, Oct 18 Chinese appliance maker Haier
said on Thursday it would be taking a majority stake in New
Zealand's Fisher and Paykel Appliances Ltd after some
institutional investors accepted a sweetened offer.
Haier, which already owns 20 percent of the New Zealand
laundry and kitchen appliance maker, raised its offer by 6.7
percent to NZ$1.28 a share, a price which values the company at
around NZ$927 million ($760 million).
The move is set to beef up Haier's technology and reduce its
reliance on a slowing China economy, although it was not
immediately clear how large the company's majority stake would
be. Haier is the parent of Haier Electronics Group Co Ltd
and Qingdao Haier Co Ltd.
F&P Appliances recommended that shareholders accept the new
offer as fair value although it was at the bottom end of an
independent valuation that the company was worth between NZ$1.28
Analysts said Haier had wrangled a good deal.
"There was no way Haier was going to get NZ$1.20," said
Dennis Lee, equities analyst at Craigs Investment Partners.
"The $1.28 offer is at the bottom end of the valuation range
so that's a good compromise."
Lian Haishan, president of Haier White Goods, said the
acceptance of the new offer by some institutional investors
showed the firm was paying a fair price, as it is a 71 percent
premium on the share price before the original offer.
"(The new offer) will provide shareholders with both
certainty and the opportunity to realise cash from their
investment now, which is very attractive in today's economic
Shares in F&P Appliances rose to a four-year high of
NZ$1.270 from NZ$1.235 after a trading halt was lifted following
The appliance company's second biggest shareholder,
Australian fund manager Allan Gray, which owns 17.5 percent, has
already agreed to accept Haier's offer.
Local fund manager Tower Asset Management has said it will
not sell its 3.68 percent stake for less than NZ$1.50 a share.
In addition to producing refrigerators, washing machines and
double-door dishwashers, F&P also manufactures automated
production equipment, and has a consumer finance arm.
It has restructured over the past two years, cutting costs
by shifting most of its production to Mexico and Thailand.
(Additional reporting by Gyles Beckford; Editing by Edwina