France's leading household appliance manufacturer Groupe SEB on
Wednesday began the final process of purchasing a majority stake in
Zhejiang Supor Cookware, a company source said.
According to a Groupe SEB announcement, the French company,
which already holds a 30 percent stake in Supor, will buy a maximum
49,122,948 shares of the private cookware maker in east China's
Zhejiang Province at 47 yuan (6.3 U.S. dollars) per share.
The deal allows the French company to take a total stake of
52.74 percent in its Chinese counterpart.
Thierry de la Tour D'Artaise, Groupe SEB president and CEO, said
his company had confidence in Supor's development prospects in the
long term. He believed the ongoing acquisition was an important
strategic move for both sides. Based on such confidence, Groupe SEB
raised its purchase price.
Previously the takeover price was 18 yuan per share. The
increased price had a premium of 16.2 percent against the average
price of Supor shares in 30 trading days before Nov. 15, and a
premium of 17.6 percent against the closing price of Supor shares
on the same day.
Su Xianze, Zhejiang Supor Inc. Ltd. chairman, expressed support
for Groupe SEB's offer. "We are confident about the future of our
cooperation with SEB."
It was reported that by Aug. 31, Groupe SEB had bought 30
percent of Supor's shares traded on the Shenzhen Stock
Exchange.
The deal aroused vociferous objections from Chinese cookware
firms before the Ministry of Commerce, which had launched an
anti-monopoly investigation into the project, approved the takeover
in April.
It is believed the approval paved the way for foreign investors
to take part in more purchases of non-strategic Chinese
industries.
Supor manufactures such kitchenware as pressure cookers and
woks, among others. Last year, it was reported the Hangzhou-based
company was building two new factories, one in China and another in
Vietnam.
(Xinhua News Agency November 21, 2007)
