July 9 (NBD) -- Chinese air conditioning compressor manufacturer Shanghai Highly (Group) Co Ltd (Shanghai Highly, 600619.SH) revealed Friday a new private placement plan to raise no more than 1 billion yuan (150.6 million U.S. dollars).

Shanghai Electric (Group) Corp (Shanghai Electric), controlling shareholder of Shanghai Highly, will be the only target of the non-public offering and will purchase no more than 173 million shares of the air conditioning compressor maker. 

Upon the completion of the private placement, the stake that Shanghai Electric holds in Shanghai Highly will surge to about 33.51 percent from current 20.22 percent.

The new deal came after Gree Electric Appliances Inc of Zhuhai's (Gree, 000651.SZ) purchase of an additional 5 percent stake in Shanghai Highly.

From April 23 to July 4, Gree bought 43.32 million shares of the air conditioning compressor manufacturer through auction trading, now holding a total of 10 percent stake in the Shanghai-based company.

Liang Zhenpeng, observer of the home appliance industry, told jiemian.com that Gree is seeking to become the largest shareholder of Shanghai Highly. But the air conditioning compressor maker has no intention to be taken over by Gree.

The new deal will give Shanghai Electric more control over Shanghai Highly.

According to Shanghai Highly's announcement, 70 percent of the proceeds raised will be used to repay bank loans and 30 percent for replenishment of the company's working capital.

Email: zhanglingxiao@nbd.com.cn