With the approval of the Zhuhai Municipal Government and State Asset Supervision and Administration Commission of the State Council, Zhuhai Gree Group has signed a stake transfer agreement with Hebei Jinghai Security Investment Company to transfer 80.541 million shares, which is 10% of Gree Electrical's total shares.
After the transfer, Gree Group holds 29.74% of Gree Electrical's shares and is still the largest shareholder of the company. Hebei Jinghai Security Investment Company is a joint venture company set up by ten dealers of Green Electrical, including Gree Chongqing, Gree Henan, Gree Hebei and Green Shandong, whose sales contributed to 65% of the total sales of Gree Electrical in 2006.
Liu Xinghao, secretary of the board of directors of Gree Electrical, says that by introducing the dealers as strategic investors, Gree will set up a new form of relations with its dealers and this will stimulate the dealers' initiatives and is conducive to realizing a win-win result for both parties.
Analysts quoted in local media say by transferring the stakes to its dealers, Gree's current internal structure will be improved and its decision-making will become smoother.