Leading Chinese television maker Qingdao Hisense Electric Holdings Co. Ltd. will sell 41.5 million new shares, or 17.2% of the company’s total equity after the placement, to invite new investors in a major restructuring to reduce the weight of state ownership in the company.
The company hasn’t settled on a share price and plans to offer the stake on the Qingdao Property Rights Exchange.
As part of the mixed-ownership overhaul, the equity sale is expected to lead to ownership changes in Hisense Electric’s two listed units — Hisense Visual Technology Co. Ltd. and Hisense Home Appliances Group Co. Ltd., the companies said in filings.
Shanghai-listed Hisense Visual is Hisense Electric’s main television manufacturing unit. Hisense Home Appliances, listed in Shenzhen and Hong Kong, produces equipment such as refrigerators and air-conditioners.
Background: Hisense Electric, majority-controlled by the Qingdao city government, followed Zhuhai-based appliance-maker Gree Electric Appliances Inc. to embrace mixed-ownership restructuring, aiming to attract private investors to invigorate state-owned companies.
Hisense Electric is 32.36% owned by Hisense Group, a wholly owned investment arm of the Qingdao government in Shandong province. Hisense Electric also has 170 individual shareholders including the company’s Chairman Zhou Houjian and other senior executives.
Hisense Electric’s planned equity sale will reduce the state parent’s holding and most likely leave the company without a single controlling shareholder, according to the filings.