Caterpillar to acquire mining machinery firm in Hong Kong
Caterpillar has made a preconditional offer to acquire all issued shares of ERA Mining Machinery of Hong Kong, for an estimated value of HK$6.8bn (US$885m).
ERA designs, manufactures and sells underground coal mining equipment through its subsidiary Zhengzhou Siwei Mechanical & Electrical Equipment Manufacturing in China.
Caterpillar has offered two options for the acquisition of ERA, which includes an all-cash alternative to acquire the shares in consideration for HK$0.88 (US$0.11) cash per each share.
The second option is a loan note alternative, which will entitle the loan note holder to receive a minimum of HK$0.75 (US$0.096) and up to HK$1.15 (US$0.14) per loan note upon redemption.
The offer values ERA at between HK$4.49bn (US$577m) and HK$6.8bn (US$885m) on a fully diluted basis.
Siwei possesses a manufacturing base of 600,000m2 in Zhengzhou, Henan province, where it manufactures and sells roof support equipment to underground mining customers in China.
Get More Information
(If you do not want to contact us online, please fill out the following table, we will contact you as soon as possible. We will strictly protect your privacy.)