Gu Chujun, the first private mainland entrepreneur to take over an H-share company, will not inject the 20.64 per cent stake in Guangdong Kelon Electrical Holdings he is to acquire into Greencool Technology Holdings of which he is chairman. News of the deal sent Growth Enterprise Market-listed Greencool's shares up 4.76 per cent to HK$3.30 yesterday on the back of speculation the firm would become an exclusive supplier of coolants to Kelon, an air-conditioner and refrigerator-maker. Greencool is the exclusive distributor of environmentally friendly coolants made by a company privately owned by Mr Gu. Kelon's shares ended 0.5 per cent lower in yesterday's trade to end at HK$1.81. The performance reflects concerns on Kelon's business restructuring and future post-acquisition restructuring. 'We caution that at this stage, for the still ailing Kelon, benefit from the deal is yet to be identified,' ABN Amro said. Kelon said its parent would sell a 20.64 per cent stake for 560 million yuan (about HK$524.7 million) to Mr Gu, who owns 61.6 per cent of Greencool. Mr Gu will become the largest shareholder in Kelon, while its parent's stake will be reduced to 13.4 per cent. He said he intended to increase his stake in Kelon to not more than 30 per cent - over which he would be required to offer to buy all shares not already owned by him. Analysts said Mr Gu's acquisition might pave the way for further mergers and acquisitions among private and state-owned consumer electrical-makers. Such deals would help improve efficiency and better prepare them for competition after China's World Trade Organisation entry, they said.