Chinese electronics and home appliances maker Midea has announced that it plans to invest CNY392 million to acquire a 32.5% stake in Egypt's Misr Air Conditioning Manufacturing Company (Miraco) from United Technologies Corporation.
Upon the completion of this acquisition, UTC will still be the largest shareholder of Miraco by holding a 37.1% stake via its wholly-owned subsidiary Carrier Corporation; while Midea will be the second largest shareholder with the 32.5% stake.
By acquiring the stake in Miraco, Midea will gain the opportunities to invest in Miraco's products, brands, and markets to build its strategic competitiveness, expand its market in Africa, and improve its cost competitiveness in Egypt and the surrounding regions.
The acquisition has been approved by Fang Hongbo, chairman of Midea, but is still waiting for the approval from the Department of Commerce of Guangdong and China's National Development and Reform Commission.
Miraco is a company listed in Cairo and Alexandria Stock Exchange in Egypt. Its current market value is about USD190 million and it has total equity of 15 million shares. It mainly makes and sells heating, air-conditioning, and refrigeration products. According to public statistics, Miraco's total assets in 2009 were USD110 million; its net assets were USD77 million; its total revenue was USD204 million; and its net profit was USD20.6 million.