Zoomlion ups Terex offer
Terex Corporation has received a revised non-binding proposal from Zoomlion Heavy Industry Science and Technology to acquire all of the company’s outstanding shares for USD31 per share.
This comes after Zoomlion offered a proposal to buy the company for USD30 per share in January 2016, in an attempt to override the existing deal between Terex and Konecranes.
The new proposal is dependent on receipt of US and Chinese regulatory approval, as well as Zoomlion shareholder approval.
Terex has said that its board of directors, in consultation with its legal and financial advisors, has decided to “pursue negotiations of definitive terms” with Zoomlion to ascertain whether it can obtain a binding proposal from the manufacturer that has a “high degree of closing certainty”.
There can be no assurance that a satisfactory proposal can be achieved, added Terex in a stock exchange statement.
Moreover, said the US headquartered manufacturer, the Terex board of directors has not changed its recommendation in support of the proposed combination with Konecranes.
Until such time as Terex’ existing agreement with Konecranes is terminated, Terex is prohibited from entering into an agreement with Zoomlion.
Without agreement from Konecranes, Terex may not terminate its existing agreement unless and until Terex shareholders vote upon, and fail to approve, the Konecranes transaction, or Terex is otherwise entitled to terminate under its agreement with Konecranes.
In response to this statement, Konecranes said that it continues to believe that the merger of equals with Terex represents a “highly compelling opportunity” for both companies and their shareholders.