Giant Chinese appliance maker Haier has received approval from two Chinese regulatory authorities to go ahead with its $741 million bid for Fisher and Paykel Appliances, and now only needs New Zealand's Overseas Investment Office approval.
Haier, which is targeting a 90% holding allowing compulsory acquisition of the outstanding 10%, has already attained more than 61%, building from its original 20% stake.
Yesterday, former company director Gary Paykel sold his 0.52% stake, the ninth largest on the register, to Haier for more than $5.35 million. Other recent sellers were the ACC, AMP and Harbour Asset Management.
About two weeks ago, Haier raised its initial $1.20 per share offer to $1.28, the bottom end of the range detailed by independent valuers. However, it prompted F&P's board to recommend to shareholders they accept the revised offer.
Craigs Investment Partners broker Greg Easton said he was surprised that acceptances so far were "tracking pretty slowly", and he still doubted Haier could reach its 90% target by the closing date for the offer of November 6.
He noted the offer was conditional on Haier gaining Overseas Investment Office approval.
He said a second, increased offer was "not on the cards".
He thought many shareholders were holding out over sentimentality for the New Zealand manufacturer.
Haier yesterday announced approval from the Commerce Bureau of Qingdao Municipal Government, which followed earlier approval announced by China's National Development and Reform Commission.
