China Eximbank provides loan to Sany Heavy Industry to facilitate its acquisition of 10.5% stake in Palfinger AG

Project narrative

On September 30, 2013, Sany Heavy Industry Co., Ltd. ("Sany Heavy") — a Chinese multinational heavy equipment and construction machinery company listed on the Shanghai Stock Exchange and part of the Sany Group — signed a memorandum of understanding (MoU) with the Palfinger family and others to acquire a 10.5% stake in Palfinger AG (an Austrian technology and mechanical engineering that manufactures construction equipment like hydraulic lifting, loading and handling systems) for a consideration of approximately EUR 108 million. The deal was structured so that Sany Heavy would acquire the 10.5% stake as follows: a 5.25% stake (1.86 million shares) to be acquired via the issuance of new shares to Sany Heavy from the authorized capital of Palfinger and a 5.25% stake to be effected through the acquisition of existing shares from the Palfinger family at EUR 29 per share. Additionally, on September 30, 2013, Palfinger AG signed a related memorandum to acquire 10% stakes in Sany Automobile Hoisting Machinery Co., Ltd. and Zhejiang Sany Equipment Co., Ltd. from Sany Heavy Industry for a consideration of EUR 110 million. On December 10, 2013, Sany Industry signed the definitive acquisition contract with Palfinger to acquire a 10.5% stake in Palfinger. On the same day, Palfinger signed a contract to acquire 10% stakes in Sany Automobile Hoisting Machinery Co., Ltd. and Zhejiang Sany Equipment Co., Ltd. from San Heavy Industry. To facilitate the acquisition, in 2014 the Export-Import Bank of China issued a loan to Sany Heavy Industry. The acquisition was completed on May 14, 2014.