Haier chief calms fear over Fisher & Paykel future

WELLINGTON - A senior executive of Chinese electrical appliance giant Haier Wednesday moved to calm fears over jobs and manufacturing bases of one of New Zealand's oldest and most reputable whiteware makers as Haier moves ahead with a takeover bid.

Liang Haishan, director of Haier New Zealand Investment Holding Co Ltd, a subsidiary of Haier Group, and president of Haier White Goods Group, said Haier had great respect for the history, achievements and organizational culture of Fisher & Paykel Appliances Holdings.

Haier saw Fisher & Paykel Appliances remaining as a stand-alone company led by local management, Liang said in a statement.

"We want the Fisher & Paykel Appliances brand to stay and we will support its growth as a global premium brand, with the additional advantages of operating within the Haier Group," Liang said.

"We also wish to retain the existing Fisher & Paykel Appliances development base in New Zealand and to support the future growth of Fisher & Paykel Appliances' product development capabilities."

Liang said Haier wanted to retain the technical and operational expertise and business development capabilities of the New Zealand firm's employees.

"We think the opportunities for Fisher & Paykel Appliances' employees will increase over time as a result of our greater involvement," he said.

The proposed offer price of 1.20 NZ dollars (98 US cents) represented a significant 60-percent premium to Fisher & Paykel's share price at the close of trading on Sept 7, the last trading date before the market knew of the bid, said Liang.

"We believe the opportunity to receive cash and realize a significant premium over the current share price is attractive for Fisher & Paykel Appliances' shareholders, particularly given market volatility, recent economic uncertainty and the competitive nature of the global white goods sector," he said.

He also reminded shareholder that Allan Gray Australia, holder of 17.46 percent of Fisher & Paykel Appliances shares, had an irrevocable agreement to accept the proposed offer.

The proposed offer was subject to regulatory approval and Haier taking at least 50 percent of Fisher & Paykel Appliances shares.

Based in Qingdao, Shandong province, Haier Group employs more than 80,000 people around the world and had global revenues of 23. 3 billion U.S. dollars last year.

Haier acquired 20 percent of Fisher and Paykel Appliances in 2009, establishing cooperation agreements in research and development, sourcing, manufacturing and marketing.

Meanwhile, the independent board of Fisher & Paykel, which excludes the two Haier directors, reminded shareholders Wednesday that it recommended they should wait for an independent adviser's report in October before taking any action on Haier's offer.

Chairman Keith Turner said the board's support for the proposed offer was conditional on no other better alternatives and on the bid price being within or above the independent expert's valuation range.

"We are already receiving calls from parties interested in acquiring certain FPA divisions," he said in a statement.

Fisher & Paykel Appliances Holdings, the parent company of Fisher & Paykel Appliances and Fisher and Paykel Finance, is listed on the New Zealand and Australian stock exchanges and employs more than 3,300 staff worldwide.

Established in New Zealand in 1934 and first listed in 1979, the company has manufacturing plants in New Zealand, Italy, Thailand and Mexico.