Zoomlion announced that the company will continue to advance its proposed transaction of acquiring Terex Corp. at $30 per share in cash. The Chinese construction equipment manufacturer made a non-binding offer on Dec. 4, representing a 41-percent premium compared to the last closing price of Terex prior to the offer, which was $21.22.
Zoomlion said it has prepared a concrete financing plan for this proposed transaction and plans to utilize its own cash on hand, representing 40 percent of the overall financing plan, and bank debt financing representing 60 percent of the overall financing plan to complete the proposed transaction. For the bank debt financing portion, letters of support have been received from relevant banks, Zoomlion said.
Zoomlion acknowledges that the proposed transaction will be subject to the review of multiple regulatory authorities, and said it is confident it will receive the necessary regulatory approvals.
Zoomlion said it believes that the proposed transaction offers strategic benefits to both companies. It added that Terex’s main products include construction machinery such as aerial work platforms, material handling and earthmoving equipment. A merger between Zoomlion and Terex would give Zoomlion and Terex a more comprehensive product offering and wider product coverage, potentially expanding Terex’s distribution into China and other emerging markets.
“The merged company will be able to achieve a global footprint,” Zoomlion said in a statement. “Terex possesses advanced manufacturing knowhow and technology, whereas [Zoomlion] has abundant production capacity and manufacturing cost advantages. The merged company will be able to realize production capacity synergies and optimize finance costs. Terex and [Zoomlion] share similar corporate cultures and both companies have excellent management teams. [Zoomlion] would look to Terex’s international management team to bring significant global experience and knowledge to the merged company.”
Zoomlion added that it has made all necessary preparations for the proposed transaction and has engaged professional financial advisors and legal counsels.
