Terex Confirms Receiving Unsolicited $30/Share Offer For Company From Zoomlion; Will Discuss Offer (NYSE:TEX)
January 26, 2016 by Jason Feld in Mergers & Acquisitions, Regulatory News, Stock - News ·
Terex (NYSE:TEX) shares were higher nearly 17% on Tuesday after confirming it has received an unsolicited, non-binding acquisition offer from China’s Zoomlion Heavy Industry Science and Technology worth $30 per share in cash. The lifting and material handling solutions said that while it is still recommending a merger deal with Konecranes Plc, it has entered into a confidentiality agreement with Zoomlion and is in discussions with Zoomlion regarding the proposal. Terex said Zoomlion’s offer would be conditioned upon, among other things, receipt of U.S. and Chinese regulatory approval and Zoomlion shareholder approval. TEX trades in the lower half of the 52-week range between $13.62 and $29.32.
The stock is up 1.56% or $0.32 after the news, hitting $20.8 per share. About 19.44M shares traded hands or 1520.00% up from the average. Terex Corporation (NYSE:TEX) has declined 37.74% since June 19, 2015 and is downtrending. It has underperformed by 26.71% the S&P500.
Terex Corporation operates as a lifting and material handling solutions company. Its Aerial Work Platforms segment designs, manufactures, services, and markets aerial work platform equipment, telehandlers, and light towers, as well as related components and replacement parts under Terex and Genie names. The companyÂ’s Construction segment offers compact construction equipment, including loader backhoes, mini and midi excavators, wheeled excavators, site dumpers, compaction rollers, skid steer loaders, and wheel loaders; and specialty equipment, such as material handlers, concrete mixer trucks, and concrete pavers. Its Cranes segment designs, manufactures, services, refurbishes, and markets mobile telescopic, tower, lattice boom crawler, lattice boom truck, utility equipment, and truck-mounted cranes, as well as related components and replacement parts under Terex name.
The companyÂ’s Material Handling & Port Solutions segment offers industrial cranes, such as universal cranes, process cranes, rope and chain hoists, electric motors, light crane systems, and crane components; and port and rail equipment, including mobile harbor cranes, straddle and sprinter carriers, gantry cranes, reach stackers, empty and full container handlers, general cargo lift trucks, automated stacking cranes, automated guided vehicles, terminal automation software, and related components and replacement parts. Its Materials Processing segment provides materials processing equipment, such as crushers, washing systems, screens, apron feeders, chippers, and related components and replacement parts under the Terex and Powerscreen brands. The company also provides financing solutions to assist customers in the rental, leasing, and acquisition of its products. It serves the construction, infrastructure, quarrying, mining, manufacturing, transportation, energy, and utility industries worldwide. Terex Corporation was founded in 1925 and is based in Westport, Connecticut.
wallstreet.org
P.S.
Zoomlion sets focus on 'strategic' M&A targets By Lyu Chang in Shanghai (China Daily) Updated: 2014-11-26 08:29
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 | A workshop of Zoomlion Heavy Industry Science & Technology Development Co Ltd in Changsha, capital of Hunan province. The construction equipment maker will explore strategic merger and acquisition opportunities to boost exports. [Photo / Xinhua]
| Expansion intooverseas markets, diversification also feature in long-term plans
Construction equipment maker Zoomlion Heavy Industry Science & Technology Development Co Ltd said on Tuesday that it will explore strategic merger and acquisition opportunities, rather than large purchases, to boost its exports amid an industry downturn.
"We are open to various acquisition opportunities to complement our existing product lines, but large deals are not under consideration at the moment," said Zhang Jianjun, a senior official at the company.
He made the remarks on the sidelines of Bauma China 2014, a trade fair for construction machinery in Shanghai.
Zhang said the company expects that overseas operations will increase to 30 to 40 percent of its business in the next three to five years, against 10 percent this year.
Hit hard by an industry downturn in the past three years, Zoomlion is shifting its emphasis to overseas markets to offset domestic overcapacity.
The Shenzhen-listed company has struck several deals outside China to expand its product portfolio. Those include taking a stake in Raxtar, a Dutch hoist maker, and the acquisition of Germany's leading dry mortar producer, M-TEC.
But the main motive for further purchases will be global sales networks, Zhang said.
Seeking to profit from the government's "One Belt One Road" initiative, Zoomlion has a long-term strategy of global expansion in regions such as Southeast Asia, the Middle East, Africa and South America. The initiative refers to President Xi Jinping's proposal to build the Silk Road Economic Belt on the Eurasian continent and a Maritime Silk Road connecting China with Southeast Asia.
Sun Changjun, a spokesman for the company, said that it will follow large domestic construction companies abroad to meet their demand around the world.
The firm, based in Changsha, the capital of Hunan province, has also explored deals beyond its core business of construction machinery, including the acquisition of a stake in farm equipment producer Chery Heavy Industry Co Ltd.
Chinese machinery producers have been fighting shrinking domestic demand for machines and tools to construct high-rise buildings, roads and other infrastructure projects. This demand has waned amid a weak economy and sluggish property market.
Zoomlion's first-half net profit was flat at about 1 billion yuan ($163 million).
China's machinery industry will continue to recover in the first half of 2015, given an improved economic outlook and potential growth in the real estate market, according to Zoomlion.
Sun warned of the potential risks of high inventories, low utilization rates and high financing cost, all of which have burdened the industry.
"The golden years of high growth seen in 2009 and 2010 will never come back," he said. "In future, strong companies will become stronger, and small and weak ones will be left out in the market."
chinadaily.com.cn
Zoomlion says to book Q3 loss on weak yuan, supply glut
BEIJING
Oct 13 Major Chinese construction machinery maker Zoomlion Heavy Industry Co said on Tuesday it expects to report a loss in the third quarter due to the weakness in the yuan and a supply glut at home.
Zoomlion expects to report a net loss of between 190 million yuan and 290 million yuan ($30 million to $45.7 million) for the June to September period, compared with a net profit of 100.2 million yuan for the same year-ago period, the company said in a stock exchange filing.
In the first half of this year, Zoomlion also booked a net loss of 309.8 million yuan, in line with its own forecasts.
China's slowing economy has taken its toll the earnings of Zoomlion and rivals Technology Co Ltd and Sany Heavy Industry Co Ltd, as the companies are stuck with a glut of unsold equipment and factories they don't need. (Reporting by Fang Yan and Matthew Miller in BEIJING; Editing by Miral Fahmy)
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