Terex attains 81.83 percent shareholding on expiry of additional acceptance period
Düsseldorf, 21. July 2011
Terex Industrial Holding AG today announced the final outcome of its voluntary public tender offer to shareholders of Demag Cranes AG. According to Terex, the acceptance rate on expiry of the additional acceptance period at midnight on 19 July 2011 came to 80.81 percent; taken together with the 1.02 percent shareholding that Terex had acquired previously, this gives Terex an 81.83 percent shareholding in Demag Cranes AG. Completion of the transaction, with the transfer of ownership in the shares to Terex, is still pending regulatory approval in Europe.
Terex increased the offer price from EUR 41.75 to EUR 45.50 per share on 16 June, representing a 29.3 percent premium on the three-month volume-weighted average share price before announcement of the tender offer. The Management Board and Supervisory Board of Demag Cranes AG had recommended that shareholders should accept the improved offer. Prior to this recommendation, Terex had pledged far-reaching autonomy to Demag Cranes under a Business Combination Agreement and provided extensive guarantees to safeguard locations and jobs. By that agreement, Demag Cranes, after the takeover by Terex, will remain an independent operating segment within Terex Group, pursuing its existing business activities. Strategic and operating responsibility for the business will remain with the Demag Cranes AG Management Board. Demag Cranes retains its Düsseldorf headquarters and has obtained a five-year site preservation guarantee for its German production sites in Wetter, Düsseldorf, Uslar and Luisenthal. Terex has also undertaken not to cause Demag Cranes to announce enforced redundancies as a direct result of the takeover for a period of three years. Following effectiveness of any domination agreement, Terex additionally intends to combine its activities in the port equipment business with Demag Cranes’ port technology business. Leadership of this business shall similarly remain with the Demag Cranes Operating Segment Board.
About Demag Cranes
The Demag Cranes Group is one of the world’s leading suppliers of industrial cranes and crane components, harbour cranes and terminal automation technology. Services, in particular maintenance and refurbishment, are another key element of the Group's business activities. The Group is divided into the business segments Industrial Cranes, Port Technology and Services and has strong and well-established Demag and Gottwald brands. Demag Cranes sees its core competence in the development and construction of technically sophisticated cranes and hoists as well as automated transport and logistics systems in ports and terminals, the provision of services for these products and the manufacture of high-quality components.
As a global supplier, Demag Cranes manufactures in 16 countries on five continents and operates a worldwide sales and service network that is present in over 60 countries through its subsidiaries such as Demag Cranes & Components GmbH and Gottwald Port Technology GmbH, agencies and a joint venture. In financial year 2009/2010, the Group, with its 5,711 employees, generated revenue of EUR 931.3 million. Since the end of June 2006, the Demag Cranes share (WKN: DCAG01) has been listed in the Prime Standard of the Frankfurt Stock Exchange and is traded on various indices including the MDAX®.
Demag Cranes AG. We Can Handle It.
Conditions for forward-looking statements
This press release contains forward-looking statements relating to the business, financial performance and earnings of Terex Material Handling & Port Solutions AG and its subsidiaries and associates. Forward-looking statements are based on current plans, estimates, projections and expectations and are therefore subject to risks and uncertainties, most of which are difficult to estimate and which in general are beyond the control of Terex Material Handling & Port Solutions AG. Consequently, actual developments as well as actual earnings and performance may differ materially from those which are explicitly or implicitly assumed in the forward-looking statements. Terex Material Handling & Port Solutions AG does not intend or accept any obligation to publish updates of these forward-looking statements.