Gree to be without controlling shareholder

Gree‘s stock price closed high on Monday morning at 59.96 yuan ($8.65), after Gree said it will be without a controlling shareholder as the private equity firm Hillhouse Capital becomes the biggest shareholder of Gree Electric on Monday.

Hillhouse Capital will take over 15 percent of Gree‘s shares at a price of 41.6 billion yuan ($5.9 billion).

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As Hillhouse Capital takes over Gree‘s shares, the company is now without an actual controlling shareholder and left with a new management system, which is deemed as a modern shareholding system. Numerous companies are under such a system, including Pingan and TCL, according to a report by yicai

Market participants generally believe that with such a large quantity of investment, the cash flow will lead to higher dividend requirements from major shareholders. It is expected that Gree‘s dividend rate will increase in the future, the report said.


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