Xiaomi Go in with Midea for Smart Home


A few days ago, Midea Group officially announced that non-public shares that they intend to offer to their strategic investor Xiaomi Technology have been reviewed by CSRC ( China Securities Regulatory Commission ), and the targeted number of shares outstanding is 5,500 shares with the issue price of RMB22.01, and the fund-raising is not more than 1.266 billion.


On December 14 last year, both Xiaomi and Midea Group announced that, the two parties have signed a strategic cooperation agreement. Midea would conduct directional add-issuance 55 million shares to Xiaomi Technology with RMB23.01 per share, and the total funds raised can not be more than RMB1.266 billion. Whether Xiaomi or Midea, both of them are somewhat layout in the field of smart home, moreover the shares agreement for both sides is important strategic initiatives.

According to the notice issued by Midea previously, through this issue, on the one hand, the company regard the equity cooperation with Xiaomi Technology as a link to set up the powerful and complementary strategic alliance for the whole ecological chain, and they would like to build their own smart ecosystems by means of forming the strategic alliance with Xiaomi. On the other hand, improve the capital structure of this company, reduce the interest expense, strengthen the company’s capital strength and enhance the operating capacity and governance levels of company’s new industries.

With the advantages of Midea Group, Xiaomi will speed up the layout of the smart home, while Midea will also promote its own smart process in the mobile Internet field in the future.


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