Chinese petrochemical company and owner of KraussMaffei, Sinochem, has taken the next step in the ongoing internal debt-to-equity conversion process previously announced in August. According to a statement issued 13 Dec. the company is currently converting existing shareholder loans into equity for China National Chemical Equipment (Luxembourg) S.á.r.l. (CNCE Lux), the parent company of the KraussMaffei Group.
CNCE Lux is a wholly-owned subsidiary of KraussMaffei Company Limited (KMCL), a company listed on the Shanghai Stock Exchange in China. In the future, however, this will change: once the debt-to-equity conversion deal has been completed, CNCE Lux will be 90,76% owned by CNCE Group (Hong Kong) Co., Limited (also a Sinochem Company). This means the KraussMaffei Group will no longer be a majority owned part of a listed company. This will significantly reduce the company's mandatory financial reporting and administrative workload, freeing up resources that can now be allocated to its core business.
KraussMaffei Company Limited (KMCL) will continue to be listed on the Shanghai Stock Exchange but will hold less than 10% of the shares in CNCE Lux / KraussMaffei Group.
The transaction involves some € 478 mio and is expected to significantly improve the KraussMaffei Group's capital structure and financial performance. This will not only open up new investment opportunities for the group but also position the company more securely for the future—a future that, according to a KM spokesperson, as it now stands will be focussed on the Americas, China, and Asia.
KMCL’s 13 Dec. announcement on the Shanghai Stock Exchange complies with Chinese Stock Exchange regulations and marks the beginning of the final phase of the planned transaction. All parties are currently working to complete the process in a timely manner and are confident that the transaction will be successfully finalised.