After months of playing hardball with pursuer Terex Cranes, the board of Germany crane maker Demag has finally accepted the US company’s bid.
The management has moved to recommend that its shareholders accept the revised offer of $65.4 per share, while winning assurances from Terex regarding the safeguarding of employee jobs, existing sites and maintaining its operational autonomy within Terex.
Terex made a $1.27 billion offer last month but this was dimissed by Demag’s shareholders that felt that it undervalued the company. The latest price represents a 53% increase on the firm’s last quoted share price before rumours of Terex’ interests hit the market.
The Business Combination Agreement signed by both parties means Demag AG will not only retain its autonomy but it will also have control over strategic and operational planning.
“We are pleased to have reached an agreement with the management of Demag Cranes that provides an excellent basis for the future joint success of Terex and Demag Cranes,” Terex CEO Ron DeFeo. “Our businesses are highly complementary and the combination has compelling industrial logic for all of our collective stakeholders.
“Demag Cranes products are competitive and innovative. The company is professionally managed, with highly motivated staff, and Terex will draw on this for both Demag Crane’s ongoing success and the future of Terex as a whole.”
