FPA, once the manufacturing leading light in New Zealand, and particularly Dunedin, confirmed yesterday it had been approached by Haier, a 20% shareholder in the company, expressing a takeover offer for the company.
In its expression of interest, the potential cash offer price indicated by the Chinese company would represent a premium to FPA's share price, if an offer was made.
Mr Easton said no offer had been received but it was likely that if the three large FPA shareholders agreed to the deal, something could be announced later in the week.
Among FPA's major shareholders are Orbis Management with 17%, ACC with 7.5% and AMP Capital Investors with 5.2%.
If those three sold, Haier would be close to a 50% controlling stake.
The share price reached $1.05 at its peak yesterday, before closing at 97c, up 29.33%. Shares traded on Friday at 76c.
"Investors said that to take us out, you have to pay more than $1.
"People are wanting to see the numbers."
Craigs recently put a 79c a share target price on FPA and made the stock a "hold", he said.
FPA released its five-year strategic plan to Haier as part of the process and the Otago Daily Times also received a copy.
Mr Easton said the industry conversion to direct-drive technology and the new compressor technology would be of interest to Haier as it moved into higher production in China.
The new compressor was about a third of the size of normal refrigerator compressors. It was FPA developed and regarded as "revolutionary technology".
A licence agreement signed by FPA and Whirlpool-owned Embraco had a 21-year term and it was patented technology.
It was estimated that 3 million to 5 million sets per year would be sold by 2017, on a conservative assumption, he said.
FPA was the first to implement direct-drive technology and Asian manufacturers had widely adopted direct-drive and had been a major factor in marketing the benefits to the consumer.
One of the interesting side issues to follow would be the future of Fisher and Paykel Finance, Mr Easton said.
FPA had previously tried to sell it, but failed.
The figures supplied by the company showed higher net interest margins compared to the previous corresponding period, lower bad debt expense, and new business for the Q Card and Farmers Card had increased.
Both Q Card and Farmers Card had wide customer recognition, he said.
In its presentation to Haier, FPA said the board was encouraged by the "solid start" to the financial year so far, but remained aware of the potential for economic conditions to change suddenly in key markets, especially in Australia and the United States.
The second half of the year had traditionally provided the majority of full-year earnings.
The second half of the present financial year would also benefit from sales from the new motor contracts and, after a gap of several years, from the release of new products to the market.
Capital expenditure was forecast to be about $42 million.
Group net debt at the end of the financial year was expected to be well below reported group net debt of $65 million as at March 31.
Mr Easton said Haier joined FPA's shareholders as a "white knight" when the company needed money.
"That got Haier in the door but the company [FPA], through its own efforts, has made itself more attractive and sleek. Low debt is certainly an attraction for Haier."
Group full earnings before interest and tax (ebit) were expected to be between $70 millon and $78 million. The board intended to resume dividend payments this year, the company said. Details of the amount and timing of any distribution would be announced in November.
