Loewe Jumps on Strategic Partnership With China's HisenseWeixin Zha
Loewe AG, the German maker of luxury televisions that applied for creditor protection two weeks ago, rose the most in a month after announcing a strategic partnership with China’s Hisense Electric Co.
Loewe climbed as much as 35 percent, its steepest intraday gain since June 26, and was trading up 26 percent at 2:01 p.m. in Frankfurt, valuing the company at 29 million euros ($38 million). Trading volume was nine times the three-month daily average.
Loewe, responsible for the first public television transmission in 1931, and Qingdao, China-based consumer electronics-maker Hisense will cooperate in purchasing, production, development, and sales, the Kronach, Germany-based company said in a statement.
The German company filed for creditor protection on July 16 at Coburg local court to reorganize with the help of strategic partners and investors. In recent years, Loewe struggled to win buyers in its dominant European market for flat-screen TVs, audio speakers and home entertainment systems, as sales fell to 250 million euros last year from 374 million euros in 2008.
With today’s agreement, Loewe will gain access to the Chinese market while Hisense will make use of its partner’s distribution network in western Europe. Loewe will start by distributing Hisense products in Austria. The Chinese company will give Loewe access to the latest TV panel technology. In return, Loewe is offering its software for multimedia and Internet applications, the company said.