It was announced yesterday that State-owned Assets Supervision and Administration Commission of Zhuhai (Zhuhai SASAC) plans to sell a 15% stake in Gree Electric; no buyer has been disclosed.
As at Sep 2018, Gree Electric’s parent, Gree Group (owned by Zhuhai SASAC) had an 18.22% stake in Gree Electric, and the 15% stake will be sold at a price no less than the average stock price of the last 30 trading days.
We believe that potential buyers can include competitors in the industry, tech giants wishing to expand their reach, or other governmentlinked entities.
According to Chinese media reports, there is also talk that Gree Electric’s Chairwoman Ms. Dong Mingzhu and her management team have a “strong intention” to buy the stake.
Pending further details, we maintain our HOLD rating and fair value estimate of RMB48.48 on the stock.
Source: OCBC Research - 9 Apr 2019
Created by kimeng | Dec 29, 2022
Created by kimeng | Dec 29, 2022