Chinese conglomerate Haier Group Corp. plans to list its household appliances unit Haier Smart Home Co. Ltd. on the Hong Kong Stock Exchange to take another company unit private, Reuters reported Dec. 12, citing people familiar with the matter.
As part of the proposed transaction, Haier Smart Home, formerly known as Qingdao Haier, will reportedly offer to exchange its newly issued Hong Kong shares for those held by minority shareholders of Haier Electronics Group Co. Ltd. The deal will let Haier Smart Home access Haier Electronics' cash, the news wire said.
The move is also expected to help Haier streamline overseas operations, according to the report.
Haier Smart Home owns around 45% of washing machine manufacturer Haier Electronics, which is valued at approximately $7.8 billion.
Haier has reportedly hired financial advisers to work on the transaction. It expects the deal to close by the second half of 2020, the report added.
Haier did not immediately respond to S&P Global Market Intelligence's request for comment.