Terex moves forward with Zoomlion
24 March 2016
US crane and construction machinery manufacturer Terex Corporation reported on 23 March that it received a revised proposal from Chinese manufacturer Zoomlion for it to buy all outstanding Terex shares. The non-binding offer is $31.00 per share. (Also see story here: http://www.khl.com/magazines/international-construction/detail/item116275/Zoomlion-ups-its-offer-for-Terex
Among other things, the offer would require approval from Zoomlion shareholders, US and Chinese regulators. Terex said it will “pursue negotiations of definitive terms with Zoomlion to ascertain whether it can obtain a binding proposal from Zoomlion which provides for a high degree of closing certainty. There can be no assurance that a satisfactory proposal can be achieved.”
The recommendation in support of the proposed combination with Konecranes still stands, Terex said. An agreement with Zoomlion would not be possible without first terminating the existing one with Konecranes. “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,” A Terex statement read.