Taking another step towards diversification, Sichuan Changhong Electric, one of the mainland's largest television makers, said it would bid for a 29.92 per cent stake in Shenzhen-listed Huayi Compressor.
After becoming the largest single shareholder of refrigerator and air-conditioner maker Hefei Meiling in August, the Shanghai-listed company notified the Shanghai Stock Exchange yesterday that it would bid for 97.1 million Huayi shares through an auction to take control of the maker of core air-conditioning and refrigeration components.
Changhong did not mention the value of the bid.
Huayi's shares strengthened 300 per cent in the past year, closing at 10.42 yuan on December 14 before trading was suspended. Based on that share price, the stake for sale in the auction is worth 1.01 billion yuan.
This year, Sichuan-based Changhong has made a number of moves to broaden its product mix. In June, it sold a 0.8 per cent stake to Microsoft, the world's biggest software maker, to strengthen ties for the joint development of internet-enabled television.
In August, it bought 82.9 million shares, or a 20 per cent stake, in Hefei Meiling for 175.6 million yuan.