Sany’s shares in Palfinger will be issued half in the form of new shares and the other half of the stake through the acquisition of existing shares from the Palfinger family. Palfinger’s 10% interest is in Sany’s lifting business, which Palfinger said is roughly the same size as its own business. The firm added that the interlinking of the two groups would presumably also be reflected in the supervisory boards of both organisations.
Xiang Wenbo, Sany group’s president, said: "Together with Palfinger, we can develop the globalisation of Sany from a Chinese perspective. We are excited about the quick success of both joint ventures. The consolidation and expansion of our strategic partnership will make an important contribution to Sany’s further growth."
Palfinger said that now that an agreement in principle had been reached, the final contracts would be drafted in the weeks to come. The implementation of the transaction would be subject to Chinese regulatory approvals. The supervisory boards of Palfinger and of Sany would also have to approve the deal.
