The headquarter of Midea Group in Foshan city, Guangdong province. Photo: Wikimedia Commons

Chinese electrical appliance manufacturer Midea Group is planning to issue shares to complete a merger with laundry equipment manufacturer Little Swan in a deal estimated to be worth 14.38 billion yuan(US$2.07 billion), reported.

Midea Group will issue shares to all A and B shareholders in Little Swan, with the exception of TITONI, which is a wholly-owned subsidiary of Midea Group.

The conversion price for Little Swan’s A shares is 50.91 yuan per share, and HK$48.41 per B share. Thus, every A share of Little Swan will be exchanged for 1.211 shares of Midea, while every B share will be transformed into 1.0007 Midea shares.

After that, the Little Swan will withdraw from the market.

Midea Group is transforming into a multinational technology group covering four major businesses: HVAC, consumer electronics, robotics and automation, and intelligent logistics. The merger will be beneficial to Midea’s strategy of “smart manufacturing + smart home.”

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.