KKR said to raise $299m paring stake in China’s Qingdao Haier

Haier
An employee pushes a cart carrying Haier Electronics Group Co. compact refrigerators inside a Lowe's Cos. store in Burbank, California, U.S., on Friday, May 19, 2017. Photographer: Patrick T. Fallon/Bloomberg

KKR & Co. raised about $299 million selling part of its stake in Chinese home-appliance maker Qingdao Haier Co., according to a person with knowledge of the matter.

KKR was the vendor in a block trade of 121.95 million shares of the Shanghai-listed company last week, the person said, asking not to be identified because the information is private. The shares were sold at 16.27 yuan each, according to terms for the deal obtained by Bloomberg, which didn’t identify the seller.

The sale was priced on Nov. 9 and executed a day later, the terms show. The final price represents a 10 percent discount to Qingdao Haier’s Nov. 8 close. Shares of Qingdao Haier fell as much as 2.8 percent on Tuesday, the biggest intraday drop in nearly two weeks, and were down 1.3 percent to 18.82 yuan at 1:30 p.m. in Shanghai.

Goldman Sachs Group Inc. was sole placing agent for the sale, according to the terms. A Tokyo-based representative for KKR declined to comment.

Qingdao Haier, which bought General Electric Co.’s white-goods business in 2016, had risen 83 percent this year through Nov. 8 as investors bet Chinese consumers will trade up to higher-priced smart appliances. The benchmark Shanghai Composite Index gained 10 percent over the same period.

KKR agreed to buy a 10 percent stake in Qingdao Haier in 2013 for 3.38 billion yuan ($509 million). It purchased the Chinese company’s shares for 11.29 yuan each, according to a Shanghai exchange filing at the time.

Bloomberg