Haier Group, one of the largest appliance manufacturers in the world, reached a global revenue of more than 150.9 billion yuan last year. [Photo/China Daily]

Chinese electrical appliance giant Haier Group is understood to be considering a full takeover of one of New Zealand's most reputable white goods manufacturers, a move which would help the Chinese brand penetrate the high-end international market.

Fisher & Paykel Appliances Holdings Ltd said in a statement it had been approached by Haier, which currently has a 20 percent stake in the company, expressing an interest in making a full takeover bid.

Huo Jianming, from Haier's Public Affairs Department, declined to comment.

Ji Min, a home appliance analyst with China Merchants Securities Co Ltd, said that acquiring an internationally recognized brand was "the best and quickest way for a Chinese manufacturer to tap the high-end market".

Haier had indicated a potential cash offer price that would "represent a premium to Fisher & Paykel Appliances' current share price, if an offer were to be made", said the statement.

Fisher & Paykel said it had yet to receive a takeover offer, but that Haier had approached three of its largest shareholders regarding the possible takeover.

Haier had asked to undertake limited commercial and financial due diligence to assist it in developing a complete proposal, it said.

If Haier did make an offer, Fisher & Paykel's independent board of directors, which excludes the two directors associated with Haier, would recommend that shareholders take no action until it carried out an assessment of the offer with an independent adviser.

The Chinese company came on board as a shareholder in 2009, buying 58 million shares in the white goods manufacturer at around 80 NZ cents (65 US cents) each.

Fisher & Paykel shares plunged to 36 NZ cents a share earlier this year on the back of falling profits and poor sales.

Its full year net profit for the year to March 31 came in at NZ$18.4 million, down from NZ$33.5 million in the previous year. Net bank debt for the period stood at NZ$65.2 million, down from NZ$100.2 million at the end of the 2011 financial year.

Haier is one of the biggest appliance manufacturers in the world. It employs 80,000 people in 17 countries and had a global revenue of more than 150.9 billion yuan ($23.3 billion) in 2011.

The company has expanded its global presence in recent years, with 26 percent of its global turnover coming from overseas. In the United States, about 30 percent of households own a Haier product.

Haier and Japanese electronics company Sanyo signed a deal last year on Haier's acquisition of Sanyo's refrigerator, washing machine and other electrical appliance businesses in Japan and some Southeast Asian nations.

wangzhuoqiong@chinadaily.com.cn