Terex Takes Another Look at Zoomlion Proposal

March 24, 2016

Terex Corporation announced yesterday that it has received a revised non-binding proposal from Zoomlion Heavy Industry Science and Technology Company to acquire all of the outstanding shares of Terex for $31.00 per share in cash and will continue negotiations of definitive terms with Zoomlion. The bid represents an increase from an initial offer of $30 a share that valued the company at $3.3 billion, which Terex initially turned down.

The proposal is conditioned on, among other things, receipt of U.S. and Chinese regulatory approval and Zoomlion shareholder approval.

The Terex board has determined to pursue negotiations of definitive terms with Zoomlion to ascertain whether the company can obtain a binding proposal from Zoomlion which provides for a high degree of closing certainty. There can be no assurance that a satisfactory proposal can be achieved.

Terex has not changed its recommendation in support of the proposed merger with Konecranes. Until Terex’ existing agreement with Konecranes is terminated, Terex is prohibited from entering into an agreement with Zoomlion. Without agreement from Konecranes, Terex may not terminate its existing agreement unless and until Terex shareholders vote upon, and fail to approve, the Konecranes transaction, or Terex is otherwise entitled to terminate under its agreement with Konecranes.

Terex shares rose 2.3 per cent to $26 in after-hours trading on Wednesday, well below Zoomlion’s offer price, suggesting investors have doubts about whether any deal with its Chinese suitor will emerge.

Source: Business Wire; Terex

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