(Reuters) -Chinese home appliance maker Midea Group said on Tuesday it is planning to spin off and list its integrated logistics business Annto Supply Chain Technology on the Hong Kong stock exchange.
Midea said the potential spin-off would help streamline the company’s managerial structure and expand Annto’s funding channels.
The initial size of the share issuance under the current proposal would not be more than 20% of the total, and the price would be decided later.
Midea, which raised nearly $4 billion in its own Hong Kong trading debut last year, plans on remaining the controlling shareholder of Annto after the spin-off.
In 2023, Midea had announced plans to list Annto on the Shenzhen stock exchange.
The company will put forward the proposal for the spin-off at its general meeting. If approved, the proposal would then be valid for 24 months, it said.
(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Krishna Chandra Eluri)
