The hottest buyback PE partner holds cifa0 fully c

2022-07-29
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Repurchasing PE partner's shareholding in Zoomlion's "fully controlled" cifa

repurchasing PE partner's shareholding in Zoomlion's "fully controlled" cifa

information on China Construction Machinery, Zoomlion now wants to use US $235.8 million in cash to transfer the 40.68% equity of Hong Kong CIFA company held by the above PE Institutions

in 2008, Zoomlion joined hands with Hony capital, Goldman Sachs, Mandalin fund and other PE Institutions to jointly acquire CIFA company, the world's third-largest concrete machinery manufacturer, and successfully realized overseas mergers and acquisitions. Zoomlion now wants to take all the 40.68% equity of Hong Kong CIFA company held by the above PE Institutions in total with us $235.8 million in cash, so as to own 100% of its equity

Zoomlion announced today (December 29) that in order to obtain 100% equity of its holding subsidiary Hong Kong CIFA company, it plans to invest US $132million through its holding subsidiary Zoomlion overseas investment management company to acquire 22.84% equity held by other shareholders of Hong Kong CIFA company, including 8.94% equity held by Mandalin fund, 12.77% equity held by Goldman Sachs and 1.13% equity held by the management of CIFA company. In addition, another US $103million was invested to acquire 100% equity of sunny Castle held by Hony capital (sunny Castle directly holds 17.84% equity of Hong Kong CIFA company). After the completion of the above transaction, Zoomlion overseas investment will buy back the remaining 40.68% equity owned by other parties of Hong Kong CIFA company, so as to wholly own Hong Kong CIFA company

it is understood that Zoomlion concrete machinery and CIFA have achieved all-round integration of technology, marketing, operation and informatization, and entered a stable development period. This transaction is conducive to further enhance the seamless integration of the company's internal resources and improve the company's future profitability

according to the data, in September 2008, Zoomlion, together with Hony capital, Goldman Sachs and Mandalin fund, invested 271million euros to acquire the 100% equity of cifa100, the world's third largest concrete machinery manufacturer, of which Zoomlion invested 162.6 million euros

"before the financial crisis in 2008, Zoomlion acquired CIFA company and successfully integrated and formed synergy. The CIFA profit in the first half of this year was twice that of 2007 before the financial crisis." Zhanchunxin, chairman of Zoomlion, made a high summary of the four-year achievements of CIFA acquisition. He also said that Hony capital, Goldman Sachs Group and Mandalin fund, the three PE institutions involved in the joint acquisition, have given full play to their respective advantages in the past four years and played an important role in the integration of the two sides

There is a space around for experiment and protection (0.7m)

Zhaolinghuan, President of Hony capital, as a co investor based on high-density silicon pillars and sensors, stressed that "the transaction of selling equity is the result of consensus reached by both parties, and the repurchase valuation is reasonable, which is in line with the interests of the co investors"

hongxiaoming, vice president and financial officer of Zoomlion, said that in response to the repurchase valuation issues of concern to the outside world, "The ev/ebitda multiple of this transaction is 8.28 times, which is lower than the average value of 13.1 times of similar scale holding transactions in the global construction machinery industry since 2011; the p/e ratio of this transaction (p/e depends on whether we can provide really good graphene materials) is about 8.59 times, which is lower than the average value of 12.63 times of the p/e ratio of municipal companies in the domestic construction machinery industry that are comparable and carefully fill in the mechanical routine maintenance record."

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