Terex “To Move Forward” In Negotiations With Zoomlion
By pdamon23 March 2016
he twists and turns involving Terex Corp. just keep coming.
Today, Terex announced that it has received a revised non-binding proposal from Zoomlion Heavy Industry Science and Technology Co. to acquire all of the outstanding shares of Terex for $31 per share in cash. The proposal is conditioned on, among other things, receipt of U.S. and Chinese regulatory approval and Zoomlion shareholder approval.
The Terex board of directors has determined to pursue negotiations of definitive terms with Zoomlion to ascertain whether it 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 said.
At the same time, Terex said its board has not changed its recommendation in support of the proposed combination with Finland’s Konecranes. Until such time as Terex’ existing agreement with Konecranes is terminated, Terex said it 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.