Chinese construction equipment manufacturing giant 1170 Sany and leading innovative lifting solution manufacturer 5050 Palfinger have finalised and signed contracts for the expansion of their mutual shareholdings.
The move comes after an agreement in principle to extend their strategic partnership was reached by the two construction groups at the end of September 2013.
Herbert Ortner, CEO of Palfinger, headquartered in Salzburg, Austria said, “During the past few weeks we have discussed the details of the capital interlinking with Sany. The signing ceremony took place yesterday morning [Tuesday December 10 2013]. We regard this step as a cornerstone for the further consolidation of our good cooperation, which will benefit both parties. These mutual shareholdings will enable both partners to deepen their level of strategic cooperation. We envisage a number of additional initiatives and projects to broaden the scope and size of our joint activities.”
As planned, half of the 10% in Palfinger being acquired by Sany will take the form of new shares issued to Sany from the authorised capital of Palfinger. The other half of the stake will be gained through the acquisition of existing shares from the Palfinger family. The price payable by Sany will be €29 per share.
As a result of the Palfinger family’s willingness to support Sany’s participation by selling a portion of their existing stock ownership, the expansion of outstanding shares of Palfinger will be limited to the 5% of newly issued shares. In return, Palfinger will acquire a 10% interest in Sany’s lifting business. Sany Lifting is part of the Sany Group that specialises in mobile, tower and crawler cranes and is said to be of comparable size to Palfinger.
The transaction will be implemented as soon as it has been approved by the supervisory boards of Sany and Palfinger, as well as by the Chinese regulatory authorities.
The move comes after an agreement in principle to extend their strategic partnership was reached by the two construction groups at the end of September 2013.
Herbert Ortner, CEO of Palfinger, headquartered in Salzburg, Austria said, “During the past few weeks we have discussed the details of the capital interlinking with Sany. The signing ceremony took place yesterday morning [Tuesday December 10 2013]. We regard this step as a cornerstone for the further consolidation of our good cooperation, which will benefit both parties. These mutual shareholdings will enable both partners to deepen their level of strategic cooperation. We envisage a number of additional initiatives and projects to broaden the scope and size of our joint activities.”
As planned, half of the 10% in Palfinger being acquired by Sany will take the form of new shares issued to Sany from the authorised capital of Palfinger. The other half of the stake will be gained through the acquisition of existing shares from the Palfinger family. The price payable by Sany will be €29 per share.
As a result of the Palfinger family’s willingness to support Sany’s participation by selling a portion of their existing stock ownership, the expansion of outstanding shares of Palfinger will be limited to the 5% of newly issued shares. In return, Palfinger will acquire a 10% interest in Sany’s lifting business. Sany Lifting is part of the Sany Group that specialises in mobile, tower and crawler cranes and is said to be of comparable size to Palfinger.
The transaction will be implemented as soon as it has been approved by the supervisory boards of Sany and Palfinger, as well as by the Chinese regulatory authorities.
