HK $6 billion bet on Chinese market German, Chinese heavy truck

China heavy Steam (3808)　　HK) After half a month's suspension of business, the German company of the world's third-largest heavy truck maker, listed in Frankfurt (hereinafter "Man"), has invested 6.048 billion euros in China's heavy steam, becoming the second-largest shareholder and the largest investment by German-listed companies in Hong Kong-listed companies so far.　　At a press conference held in Hong Kong on July 16, Ma Chunzi, China's heavy truck chairman, said that four agreements with man (shareholder agreement, Technology license Agreement, share purchase agreement, convertible bond Subscription agreement) would be a one-time solution to the problem of China's heavy steam production technology in the next three generations of environmentally friendly trucks. Under the trading agreement, under the holding condition of China Heavy Duty Truck Group Co., Ltd. (hereinafter referred to as "heavy Steam Group") on China's 51%, man will buy a convertible bond of about 599 million new shares, and purchase about 91 million shares of the shares issued by the heavy Steam group, and get a share of China's heavy truck 25% plus one.　　Involved in HK $6.048 billion. Among them, the transfer price of each share share and the purchase price of the issued shares per share are about HK $8.76, a premium of about 16.6% per share at the final closing price before the Chinese heavy steam suspension, which is about 21% above the average transaction price of 60 days before the suspension.　　June 26, China's heavy steam suspension before the 7.51 Hong Kong dollar, and after the July 16 after the exchange of shares positive news stimulated, closed to 8.66 Hong Kong dollar, Rose 15.313%.　　Man's China project management official Mozell told our correspondent, man and China heavy steam early in 2007 to start negotiations on the stake in the matter, talked about two years before the set down.　　In fact, the significance of the two giants ' cooperation is far greater than the technical ones, and they are all about the need for a more competitive Chinese car and a man who needs to expand its share of emerging markets.　　Transactions pending approval According to the relevant provisions, foreign-funded enterprises in China can not be with more than two companies, and man has been with Jinhua, yutong two companies have cooperation, so the shares need to be approved by the relevant State departments. Ma Chunzi said, "Technical projects need approval of the National Development and Reform Commission, the investment needs of the Ministry of Commerce approval, equity issues need to be approved by the Shandong provincial Sasac." In addition, the CSRC needs to complete the procedures. From now on, the state and Shandong provincial authorities are very supportive of this project. The initiative is not here, and the timetable is not good. "Introducing man as a strategic investor," Ma Chunzi said, "Man will authorize its truck and engine technology to the group in China on an exclusive basis," and, more importantly, incorporate the use of European Ⅲ, Ⅳ and Ⅴ engine production technologies into the scope of cooperation, Once solved the future three generations of China's heavy truck production technology of environmental protection problems. "As a result of the independent research and development of EGR Country 3 heavy card products grab market opportunities." In January-May this year, China's heavy truck in the heavy truck market share of 26.26%, more than the second-ranked FAW group nearly 10%. However, the competitionThe more intense, Austrian AVL, Bosch, Weichai Power jointly launched the blue-tech platform technology, as well as FAW and Dongfeng in the heavy truck platform technology upgrades, increased the pressure of China's heavy steam lifting technology. In fact, China's partnership with man dates back to the 1984, when China's heavy car acquired the truck technology of Steyr, a man's subsidiary.　　After 25 years of digestion and absorption, and now continue to work with man, for China's heavy steam, the promotion based on the same platform research and development capabilities will be relatively easy.　　Moreover, this year, in the "auto industry revitalization adjustment planning" driven by a new round of mergers and reorganization has been launched, China's heavy truck to become the government's key support and participation in the industry restructuring of the enterprise, and this marriage with man also help it in the reorganization of the intention to improve the industry concentration. In January this year, China's heavy auto production and sales of more than 4,000 vehicles, of which more than 930 vehicles exported, the year-on-year decline is larger, but the market share increased to 37.64%. Ma Chunzi said the export situation is expected to improve as the economy improves in the second half of the year.　　After the establishment of cooperation between the two products are still mainly domestic, domestic sales will account for more than 70% of the total.　　Cai Dong, president of China's heavy truck, said he hoped to digest and adopt the new technology provided by man in microbicides, but because of the new technology, and the group sales of products are in the middle grade, the cost will be improved, only the production scale increases, the cost will be competitive.　　Strewn man, China project management Officer Mozell told our correspondent, man and China heavy steam early in 2007 to start negotiations on the stake, talked for two years before finally decided. "In fact, man was initially not satisfied with the 25% share of the shares, but put forward a higher demand for shares."　　"A banker familiar with the deal told reporters. However, the "not bad money" of China's heavy steam also adhere to its own 51% of the absolute holding power. After some discussion, the Germans made concessions, but insisted that "the shareholding should not be less than one-fourth per cent."　　"The problem followed, because the German side of the 25%, which means that China's heavy steam in the Hong Kong market share of the shares will be reduced to 24%, this is not in line with the Hong Kong stock exchange of" listed companies not less than 25% of the minimum public shareholding ratio "requirements. JPMorgan has conducted in-depth and extensive communication with the SEHK, according to Wang Junping, managing director of JPMorgan Chase. "We tell them how important the project is to the company, which in the long run is good for both the company and the shareholders, and that the reduction of the 1% requirement has no effect in nature."　　The provisional committee of the Hong Kong exchange has accepted JPMorgan's recommendation that the trading package be adopted collectively in its deliberations. "This is the first time the Hong Kong stock exchange has provided ' immunity ' to a listed company, agreeing to reduce the minimum public shareholding after listing," he said.　　"Wang Junping said. Under the agreement, if convertible bonds are fully convertible, man will hold 25% per cent of China's heavy steam and agree to comply with the 2-year lock-up period, while the shareholding of the heavy steam groupThe volume will be diluted to 51%. At the same time, man will receive 4 of China's 17 directors, including one executive director in charge of cooperation projects and the remainder as non-executive directors. Hanken Samuelson, man's chief executive, told reporters after the meeting that there was no plan to increase its stake in China's heavy truck in the future. According to data from 1 to May, man's market share was 15.93% in Europe's 16-ton heavy commercial truck market, ranking second.　　The world's leading engine design companies, including the Austrian AVL Company, Germany's Fev company and the UK's Ricardo Company, have entered the Chinese market. Man pointed out that the investment in China's heavy steam, is to be in the world's largest and fastest-growing China heavy truck market continued to hold a foothold.　　Because with the development of infrastructure, industrialization and urbanization in developing countries, the main growth point of heavy truck demand will be shifted from developed to developing countries. In 2008, man's total income in China was 617 million euros, up 22% from a year earlier, and at the end of 2008 there were about 350 men in China. At present, man in China's business, including in Foshan City, Guangdong Province, heavy diesel engines, marine diesel engines, Shanxi coal chemical plant air separation compressors. Last year man set up its sixth plant in Changzhou, Jiangsu Province, and man first set up a plant outside Europe. If it goes back to earlier, in fact man in 1903 in China's Shandong Railway and bridge construction, and in 1912 built in the Yellow River Railway bridge project, there are man figure.