(Yicai Global) May 11 -- Shares in Guangdong Homa Appliances soared by the exchange-imposed limit today after TCL Technology completed its takeover of the struggling Chinese refrigerator manufacturer as the TV giant looks to increasing its presence in the white goods market.

Homa’s share price [SHE:002668] surged 10 percent to close at CNY5.84 (USD0.90).

Sister company TCL Home Appliances Group, which shares the same founder and chairman Li Dongsheng, now holds a 24.19 percent stake in Homa and has become the company’s biggest shareholder, Zhongshan-based Homa said yesterday. The State Administration for Market Regulation no longer has any objections to the takeover, it added.

Homa was a successful refrigerator maker until its former majority shareholder Zhao Guodong started to turn it into a financial holding group. It ran up huge debts in 2018 and 2020, leading to a slew of lawsuits and Zhao’s stake of around 11 percent was frozen by the courts.

Huizhou-based TCL Home bought 40.5 million shares in Homa through an online judicial auction in January and then continued to increase its stake via the secondary market. Last month, TCL Home appointed a new chairman to the board, Hu Dianqian, and a number of other senior executives.

The new board of directors has approved an investment of CNY1.04 billion (USD161.9 million) to build a production line for wind-powered fridges as well as for the expansion of warehousing facilities, giving the company a new lease of life, Homa said on April 29.

Homa is also spinning off all the fintech assets that brought nothing but trouble, it added.

Editors: Tang Shihua, Kim Taylor