Shandong Heavy Industry € 738 million purchase of 25% stake in Germany KION

Shandong Heavy Industry € 738 million purchase of 25% stake in Germany KION

NetEase, August 31 Shandong Heavy Industry Group Co., Ltd. 's Weichai Power in Germany and the world's second largest forklift manufacturer KION Group signed an investment agreement, Weichai Power will invest 738 million euros to acquire the other 25% stake as well as some the majority of the shares of the business.

The deal will be so far Chinese companies in Germany, the largest sum of direct investment. Currently, German Chancellor Angela Merkel is to visit China, the German side of the signing of the agreement date was scheduled for the morning, German time, next Monday (September 3), the two sides will also held a signing ceremony in China.

Under the terms of the agreement, according to the terms of the agreement, Weichai Power's total investment amounted to 738 million euros: 467 million euros through a capital increase in the form KION 25% of the shares acquired, 271 million euros will be used for the acquisition of the KION subordinates hydraulic business 70% majority stake. In addition, the parties have agreed that if the KION future IPO, Weichai Power has the right to select holdings the KION stake to 30%, and the right to further holdings the KION hydraulic business shares.

Parties anticipate that the transaction will end in the fourth quarter of 2012, subject to certain conditions, including the consent of the third party to give up as well as regulatory approval. KKR and Goldman Sachs, the existing shareholders will continue to retain the KION shares.

It is understood that the KION Group is second only to the Toyota Automatic Loom Company, the world's second largest forklift manufacturer, and annual revenues of 4.4 billion euros, is the largest foreign forklift manufacturer in China, has two joint venture in Jiangsu and Fujian company. Shandong Heavy Industry Group is the parent company of Weichai Power Co., Ltd., the business covers commercial vehicles, construction machinery, power systems, core components, yacht manufacturing five major sections.