Nov. 11, 2009 (China Knowledge) - Sichuan Changhong Electric Co Ltd<600839>, one of China's top home appliance manufacturers, yesterday announced that it has obtained the approval from the Mianyang State-owned Assets Supervision and Administration Commission to sell its refrigerator assets, sources reported.

Sichuan Changhong will sell a 100% equity interest in Changhong Air Conditioner Co and a 90% equity interest in Zhongshan Changhong Electric Appliance Co. The total transaction price will be not less than RMB 390 million, according to the firm's statement.

The transaction will take place through the Sichuan State-owned Asset and Equity Exchange Center, and the deal will be processed in accordance with regulati** regarding state-owned assets in China. Potential buyers may submit bids during the period from Nov. 10, 2009 to Dec. 7, 2009.

An industry expert noted that Hefei Meiling Co Ltd<000521><200521>, a Chinese manufacturer of household appliances, is expected to buy the assets. The firm previously was outbid by Ningbo Huacai Electric Appliance Co Ltd in the auction for the state-owned assets of Meiling Group.

Hefei Meiling's purchase of Sichuan Changhong's refrigerator assets would be in line with the business strategy of collaboration and resource integration that the two firms have agreed upon.

At the end of June 2009, Changhong Air Conditioner had total assets worth RMB 590.97 million, and Zhongshan Changhong's total assets amounted to RMB 332.12 million.