Comprehensive M&A data with integrated detailed company information

Zoomlion to establish Industry 4.0 automated plant
Posted on Monday, 06 July 2020 12:29
Zoomlion Heavy Industry Science and Technology is introducing four new investors through the issue of 1.25 billion new A shares worth an aggregate CNY 6.60 billion (USD 933.27 million).

The non-public issue will improve the level of intelligent manufacturing of the company; further reduce costs; and increase efficiency.

Proceeds should also bolster self-sufficiency of core parts and components and competitiveness; replenish liquidity; and facilitate sustainable operations.

Huaijin Cornerstone Equity Investment, Taiping Life Insurance, Hainan Chengyisheng Enterprise Management and Ningbo Shituo Enterprise Management are all taking part in the subscription.

Zoomlion noted: “Such strategic investors will contribute to the company by fully capitalising their respective industrial resources, market channels and other advantages, and cooperate with the company in principal businesses, financial services and other aspects.”

The amount payable by Huaijin Cornerstone, Taiping Life, Hainan Chengyisheng and Ningbo Shituo will not be more than CNY 3.10 billion, CNY 1.90 billion, CNY 1.00 billion and CNY 600.00 million, respectively.

Zoomlion is mainly engaged in the research, development, manufacturing and sale of construction and agricultural equipment, as well as financial services such as leasing.

Specifically, the group’s portfolio ranges from cranes, road and infrastructure machinery to farming, harvesting and breeding apparatus.

In the 12 months ended 31st December 2019, Zoomlion booked net profit attributable to shareholders of CNY 4.37 billion on revenue on CNY 43.31 billion, compared to CNY 2.03 billion on CNY 28.70 billion in FY 2018.

The company reported operating profit of CNY 9.07 billion and net profit attributable to equity owners of CNY 1.03 billion in Q1 2020.

Zoomlion’s equity dilution is among the top 100 capital increases announced in 2020 to date, according to Zephyr, the M&A database published by Bureau van Dijk.

China Merchants Shekou Industrial accounts for the largest such deal by a mainland-registered company after announcing plans to sell a 23.1 per cent stake for USD 5.56 billion.

© Zephus Ltd