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Zoomlion bids to buy remaining CIFA stake
Source: Bloomberg News |
December 29, 2012, Saturday
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ZOOMLION Heavy Industry Science and Technology Co, China's second-biggest construction equipment maker by market value, has offered US$236 million to buy the remaining 41 percent stake in a unit from Goldman Sachs Group Inc and other investors.
Zoomlion will fund the purchase with its own cash, the company said in a statement to the Shenzhen Stock Exchange yesterday. The unit, Zoomlion CIFA (HK) Holdings Co, was formed after the Chinese equipment maker and investors including Goldman acquired Compagnia Italiana Forme Acciaio SpA, known as CIFA, in 2008.
"This will accelerate Zoomlion's push for international expansion," the company said in a separate e-mailed statement. "Zoomlion will better integrate CIFA's business."
Zoomlion bought its 60 percent stake in the Italian company for 163 million euros (US$215 million) as it sought advanced technologies in concrete pump manufacturing. Zoomlion and bigger rival Sany Heavy Industry Co are stepping up overseas acquisitions after demand at home slowed following government curbs on the property market.
Goldman owns 12.8 percent of Zoomlion CIFA, while Chinese private-equity company Hony Capital has 17.8 percent. Chinese-Italian buyout fund Mandarin Capital Partners holds 8.9 percent. The three investors had paid 108 million euros for the stake. In 2009, CIFA management bought a 1.1 percent holding.
Concrete machinery was the biggest revenue contributor to Zoomlion last year, according to data compiled by Bloomberg News. The company's first-half profit rose 21 percent to 5.6 billion yuan as the focus on concrete pumps helped offset slumping demand for excavators.
Zoomlion will fund the purchase with its own cash, the company said in a statement to the Shenzhen Stock Exchange yesterday. The unit, Zoomlion CIFA (HK) Holdings Co, was formed after the Chinese equipment maker and investors including Goldman acquired Compagnia Italiana Forme Acciaio SpA, known as CIFA, in 2008.
"This will accelerate Zoomlion's push for international expansion," the company said in a separate e-mailed statement. "Zoomlion will better integrate CIFA's business."
Zoomlion bought its 60 percent stake in the Italian company for 163 million euros (US$215 million) as it sought advanced technologies in concrete pump manufacturing. Zoomlion and bigger rival Sany Heavy Industry Co are stepping up overseas acquisitions after demand at home slowed following government curbs on the property market.
Goldman owns 12.8 percent of Zoomlion CIFA, while Chinese private-equity company Hony Capital has 17.8 percent. Chinese-Italian buyout fund Mandarin Capital Partners holds 8.9 percent. The three investors had paid 108 million euros for the stake. In 2009, CIFA management bought a 1.1 percent holding.
Concrete machinery was the biggest revenue contributor to Zoomlion last year, according to data compiled by Bloomberg News. The company's first-half profit rose 21 percent to 5.6 billion yuan as the focus on concrete pumps helped offset slumping demand for excavators.
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