(Yicai Global) May 6 -- Chinese home appliance giant Galanz will pay about CNY2.05 billion (USD316 million) for just over 51 percent of Whirlpool China.

Galanz will buy 392 million shares in the US-backed home appliance maker, according to a statement released yesterday by Guangdong province-based Whirlpool China. Galanz had hoped to acquire 468 million shares, but the CNY5.23 a share purchase price has already earned it a CNY1.83 billion profit.

Whirlpool China was the first company with US investment to list in the Chinese mainland. Its net loss narrowed to CNY24.6 million (USD3.79 million) in the first quarter of this year as revenue jumped 60 percent to CNY1.41 billion (USD217.7 million). The firm owns four brands: Whirlpool, Sanyo, Diqua and Royalstar.

Shares of Whirlpool China [SHA: 600983] closed 7.5 percent lower today at CNY9.16 (USD1.41) each, after trading in the stock was halted on April 30.

The tender offer was extended from March 31 to April 29, with 10 accounts eventually accepting Galanz’s offer.

Whirlpool China Investment owned 390.9 million shares, or 51 percent, in Whirlpool China, while Hefei State-Owned Assets Holding owning 178.9 million, or 23.3 percent, according to Whirlpool’s first-quarter earnings. Most of the shares to be transferred come from Whirlpool China Investment.

Founded in 1978, Galanz has grown into a comprehensive white goods group in China. It has business in over 10 countries and regions and also established branches in the United States, the United Kingdom, Germany, Japan, Chile, Canada and Russia.

Editors: Xu Wei, Peter Thomas