July 25 (Bloomberg) -- Controladora Mabe SA of Mexico agreed to buy Camco Inc., a Canadian maker of Hotpoint and GE brand washing machines and stoves, for about C$70.4 million ($57.8 million) to expand in Canada.

Mabe offered C$3.52 a share for Camco, 53 percent higher than the July 22 closing price, Hamilton, Ontario-based Camco said in a statement. The transaction depends on 75.5 percent of the outstanding shares being tendered.

General Electric Co., Camco's biggest shareholder and an investor in Mabe, agreed to sell its 51 percent stake. GSW Inc., the second-biggest holder with 20 percent of the shares, hasn't said whether it will accept Mabe's offer, Camco said.

``The board is strongly supporting the bid, and they feel it's a very strong position for our shareholders,'' Camco Chief Financial Officer Neil Gartshore said in an interview.

Jamie Hyde, chief financial officer of Toronto-based GSW, didn't return a call.

Camco shares rose C$1.18, or 51 percent, to C$3.48 by the 4 p.m. close of trading on the Toronto Stock Exchange, its highest in more than four years.

National Bank Financial, which advised a special committee of the board, determined the offer is fair to shareholders, Camco said. The offer will be mailed to shareholders in August.

Closely held Mabe, which also makes GE appliances, operates 13 plants throughout Mexico and South America and expects sales this year of $2.2 billion. Camco, with 2004 sales of C$643 million, also makes Moffat, Profile, Monogram and BeefEater brand appliances.

General Electric, the world's second-biggest company by market value, holds a 48 percent stake in Mabe.

To contact the reporter on this story: Kevin Bell in Toronto at kbell2@bloomberg.net

Last Updated: July 25, 2005 16:07 EDT