Midea and Kuka Sign Investment Agreement
• KUKA to remain an independent company
• Strong commitment to KUKA sites and its workforce
Guangdong, China, 28 June 2016 – Midea (Midea Group Co Ltd, SZSE 000333), one of the world’s leading industrial groups in consumer appliances and Heating, Ventilation and Air-Conditioning (HVAC) systems, announced today that it has entered into a binding Investment Agreement with KUKA AG (KUKA), a leading global supplier of intelligent automation solutions. The Investment Agreement outlines Midea’s commitments to KUKA following the launch of the voluntary public tender offer for all KUKA shares, which was announced on 18 May 2016 and formally launched on 16 June 2016. Both parties agreed the Investment Agreement will have a fixed term of seven and a half years.
Paul Fang, Chairman and CEO of Midea, commented: “With this Investment Agreement KUKA and Midea have agreed to the details of our strategic partnership and our wide ranging commitments to KUKA, its employees, shareholders and customers. Our investment in KUKA is clearly predicated on creating long-term value for both companies. We also welcome a broadly diversified shareholder base, as we believe that the continued commitment of all shareholders will benefit the KUKA Group as a whole. We noted and welcome the positive assessment of our offer by the management board and supervisory board of KUKA and look forward to working with all stakeholders to help KUKA further expand its leading position in the sectors of robotics, automation and logistics, particularly in the Chinese market, to deliver accelerated growth.”
By signing the Investment Agreement, Midea has confirmed that it fully respects KUKA’s brand and its intellectual property and undertakes to enter into a detailed ring-fencing arrangement in order to guarantee the confidential treatment of business secrets and customer data to preserve KUKA’s relationships with its first-class customer and supplier base.
Midea also shows its full commitment with regard to KUKA’s sites and workforce and has expressly undertaken not to cause any changes to the current global workforce, site closures, nor any relocations. Furthermore, Midea has re-emphazised that it aims to maintain KUKA’s independence. Midea does not aim to enter into a domination agreement or delist the company.
Andy Gu, Vice President of Midea Group, added: “KUKA’s employees and their creativity are a key strength of the company and critical for its success. We want to build on this strength and provide greater opportunities through growth and investment.”
Complete terms and conditions of the takeover offer can be found in the German offer document published on the website www.partnershipinrobotics.com. An English convenience translation of the German offer document is also available on the website.