Shanghai. January 28. INTERFAX-CHINA - New Huadu Industrial Group will make a strategic investment of $32 million in home appliance maker Shanghai POVOS Enterprise (Group) Co. Ltd, New Huadu announced at a Jan. 28 press conference.
Upon completion of the transaction, New Huadu will hold a 19.9 percent stake in POVOS, and become the company's second largest shareholder. New Huadu's chief executive officer (CEO Tang Jun will sit as a member of POVOS' board of directors, the announcement said.
"The investment will be used toward branding and retail expansion. The POVOS network is currently present throughout the country, except in Tibet, with Shanghai Municipality, Anhui and Jiangsu Provinces as our main markets," Liu Jianguo, POVOS' chairman, said.
"The POVOS deal will diversify our investment portfolio," Tang said. New Huadu's current portfolio includes retail, metals, mining, real estate, tourism, IT, beer and pharmaceutical businesses. According to Tang, New Huadu plans for POVOS to make an initial public offering (IPO) by 2013.
Shanghai-based POVOS was established in 2003 and is principally engaged in the manufacture of small household appliances.
New Huadu is a Fujian Province-based investment company.
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