Narrative
Full Description
Project narrative
On December 3, 2012, Jiangsu Jinsheng Industry Co., Ltd — a Chinese private sector industrial group based in Changzhou, Jiangsu Province specializing in machinery and textiles — signed an agreement to purchase the Natural Fibers and Textile Components Business Units from Oerlikon Textile, the textile business of Pfäffikon, Switzerland-headquartered technology company OC Oerlikon Corporation AG. Then, on May 26, 2013, in the presence of German Chancellor Angela Merkel and Chinese Premier Li Keqiang, China Development Bank Corporation (CDB) signed a Cooperation Framework Agreement (CFA) with Jiangsu Jinsheng and OC Oerlikon in which CDB pledged to provide a loan to Jiangsu Jinsheng to finance its acquisition of Oerklikon's Natural Fibers and Textile Components Businesses. On June 21, 2013, the Hong Kong Branch of CDB signed a long-term €400 million EUR loan agreement with Saurer Hong Kong Machinery Company Limited — a subsidiary of Xinjiang Urban Construction (Group) Co., Ltd (later renamed as Saurer Intelligent Technology Co., Ltd), a vehicle of Jiangsu Jinsheng — to support the acquisition. This loan carried a maturity period of 10 years. This loan was secured by (i.e. collateralized against) Saurer's equity investments in SAURER AG, Saurer Netherlands Machinery Company B.V., Saurer (Jiangsu) Textile Machinery Co. Ltd., Saurer (Changzhou) Textile Machinery Co., Ltd., and Saurer (Changzhou) Texparts Components Co. Ltd.. The acquisition was valued at fr.648 million CHF ($683.4 million USD). It included assets and companies in 12 countries, including Switzerland, Germany, China, and India. As of the signing of the CFA on May 26, 2013, the closing of the acquisition was expected to fall in the second quarter of 2013 subject to merger control approval by China's Ministry of Commerce. The acquisition was completed on July 3, 2013.
Staff comments
1. The loan identification number is 9010361232013200019. 2. Saurer AG is a subsidiary of OC Oerlikon.