Deals
Chinese Air-Con Maker Gree Bets $2 Billion on Electric Cars
- Gree will fund purchase of Yinlong New Energy with share sale
- Gree’s new shares priced about 19% below last traded price
A workman installs an airc onditioning unit outside an apartment in Beijing.
Photographer: Adrian Bradshaw/EPAThis article is for subscribers only.
Gree Electric Appliances Inc., China’s largest air-conditioner maker, is diving into the fast-growing electric vehicle market with its 13 billion yuan ($2 billion) acquisition of Zhuhai Yinlong New Energy Co.
The appliance maker, which announced its intention to buy closely-held Yinlong in March, will fund the purchase by selling 834.9 million new shares at 15.57 yuan apiece, about 19 percent lower than the stock’s last traded price, according to a filing to the Shenzhen stock exchange Thursday.