F&P Appliances names Haier executives to board

Wednesday 1st July 2009

Fisher & Paykel Appliances Holdings, which avoided falling prey to creditors this year by attracting equity capital from Haier Group and selling shares at a discount, today named two executives of the Chinese manufacturer to its board.

Haier’s chief marketing officer Zhou Yunjie and chief financial officer Tan Lixia will become directors of Auckland-based FPA following the completion of the top-up placement to Haier, chairman Gary Paykel said.

The company also appointed Stuart Broadhurst to the new position of chief operating officer to oversee day-to-day operations, freeing up CEO John Bongard to focus on global growth opportunities from the Haier relationship, it said.

FPA raised about $200 million via a rights issue and the sale of a 20% stake to Haier, while concluding a new $575 million facility with its consortium of banks. The transactions allow it to repay about $165 million, with total debt reduction through 2010 targeted at $306 million.

Until the arrangements had been made, the company was making do with extensions to a short-term debt facility as the global slump and rising debt weakened its balance sheet.

Shares of FPA slipped 3% to 65 cents as the NZX 50 Index fell 0.5%. The shares have fallen 30% this year. Broadhurst was previously special projects and supply chain manager.

Investors welcomed the deal with Haier, which bolsters FPA’s ability to penetrate the Chinese market and allows the two companies to cooperate on product development and marketing.

“I am now even more confident about the potential we have to develop our global appliances business, through working closely with Haier to maximise synergies and market penetration opportunities,” Bongard said in a statement.

Businesswire.co.nz

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