19/05/2011 - 04:00 am

Terex Launches Tender Offer for Demag Cranes AG

Terex Industrial Holding AG, Westport, Conn., has launched a voluntary public tender offer for all outstanding shares of Demag Cranes AG.

Terex Industrial Holding AG is an indirect wholly-owned subsidiary of Terex Corp. The tender offer, which is set to end on June 30, 2011, is subject to the condition of a minimum acceptance level of not less than 51 percent of all Demag shares outstanding.

Terex is offering Demag shareholders a price of EU41.75 in cash, which represents a premium of 41 percent to the pre-takeover speculation share price on October 6, 2010. The offer also represents a premium of 19 percent compared to the volume weighted three months average share price prior to the publication of the decision to launch an offer on May 2, 2011, and a premium of 15 percent to the closing price on April 29, 2011 of EU36.30.

Demag’s business compliments that of Terex, and the combination has a compelling industrial logic. The combined entity would have had total revenues of approximately U.S. $5.8 billion in 2010, with a strong footprint in Europe and emerging markets, especially in China.

“We see Demag as an excellent fit with our existing business and believe that we can build upon business opportunities much more effectively and accelerate growth for both companies,” said Ronald M. DeFeo, Terex chairman and CEO. “We have a lot of respect for the Demag management team and its work force and would welcome the opportunity to discuss the compelling industrial logic of a combination of our businesses.”

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