Chinese appliances maker Haier is in search of a local Indian partner to ease regulatory scrutiny, The Economic Times reported on October 22.
The company, which is the third largest appliances maker in the country after LG and Samsung, is looking to employ a strategy similar to MG Motor, the report said.
The development will help the company avoid increased scrutiny by regulators and government agencies on Chinese firms and investments, the newspaper reported.
The firm is looking for Indian groups without any competing interests and could dilute up to 49 percent under a joint control mechanism, it said. Under the arrangement, the Chinese firm is proposing to have an Indian partner becoming the single largest shareholder with a local management in place before listing.
Moneycontrol couldn’t verify the report independently.
The Chinese company will benchmark its operations to LG Electronics India’s expected valuation ahead of its planned public issue, the report said.
LG Electronics’ India unit is likely gearing up for a big initial public offering, potentially raising up to $1.5 billion, Bloomberg has reported. The move is part of LG’s broader strategy to boost its electronics revenue and invigorate its consumer electronics segment.
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