TRADING in shares of domestic home appliances maker Haier Electronics Group Co. was halted upon the company’s request Friday, according to the Hong Kong stock exchange.

The halt is pending a statement, the Hong Kong exchange said.

Haier Smart Home Co. said Thursday it was making a preliminary study on taking Haier Electronics private by way of a share swap, but no plan has yet been agreed.

Haier, the world’s biggest maker of household appliances, is planning a major restructuring that will see its main unit Haier Smart Home list in Hong Kong to take another group company Haier Electronics valued at US$7.7 billion private, sources with direct knowledge of the matter said.

Under the deal, Haier Smart Home, formerly known as Qing- dao Haier and already listed in Shanghai, would offer minority shareholders in unit Haier Electronics Group newly issued Hong Kong stock for their shares, the sources said.

Financial advisers have been hired to work on the deal, which would give Haier Smart Home access to cash at Haier Electronics, the sources said, declining to be identified as negotiations were private.

Haier Electronics, which makes and sells appliances such as washing machines, held about 20 billion yuan (US$2.8 billion) in cash and short term investments as of end-June, according to Refinitiv.

One of the sources added the plan was also part of the Haier group’s efforts to streamline its overseas operations.

Haier Smart Home currently owns 45 percent of Haier Electronics and unlisted parent Haier Group Corp. holds 12 percent, while minority shareholders include Vanguard Group, Norges Bank Investment Management and BlackRock, according to Refinitiv data.

The plan is still preliminary and would be subject to regulatory approval, the sources said, adding that the aim was to complete the deal in the second half of next year. (SD-Agencies)