KKR has bought a 10 per cent stake in home appliance maker Qingdao Haier in what has been reported to be the private equity firm’s biggest deal to date.
The parties did not disclose the financial terms of the acquisition, but Reuters said KKR paid around $550m, which makes it its biggest deal in China to date, citing a person familiar with the matter.
Trading in Qingdao Haier’s shares has been halted pending an announcement since September 12 when it had a market cap of $5.8bn.
CEO of KKR Greater China David Liu said, “Qingdao Haier is one of the most respected Chinese companies with a market leading position, an outstanding historical track record and an outstanding management team. We are delighted to have the opportunity to partner with such an excellent company.
“We look forward to fully utilizing KKR’s global resources and local expertise to assist Qingdao Haier in its next phase of growth by capitalizing on the opportunities created by China’s continued urbanization and increasing consumer income trend, while also accelerating its international expansion.”
Last month it was reported that KKR had plans to invest $140m in two large Chinese dairy farms in a joint venture with CDH Investments and China’s Modern Dairy Holdings.
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