01.07.2011

Terex ‘bags’ Demag

Terex has announced that it has received the minimum number of Demag AG shares that it required - 51 percent- if it was to press ahead with its all cash takeover offer.

On Wednesday evening – just 24 hours prior to the closing deadline it had just 11.5 percent, but a late surge took that to 67 percent as its largest shareholders announced that they would tender their shares.

The final results with the exact number and percentage of shares and voting rights tendered to, and owned by, Terex Industrial Holding will be published as soon as they become available which is expected to be on or about July 5th.

According to the German Securities Acquisition and Takeover Act (WpÜG), shareholders of Demag Cranes who have not accepted the offer during the acceptance period will have the opportunity to tender their shares during an additional acceptance period of two weeks following the publication of the final tender results.

The completion of the offer still remains subject to several other conditions, primarily the merger control clearance by the European Commission.

Terex chief executive Ron DeFeo said: "We are pleased with the high level of support for this transaction from the shareholders and management of Demag Cranes. With the addition of Demag Cranes to the Terex Group, we will add a new business segment with world-class products in industrial cranes/hoists and port technology. The success of our offer demonstrates the confidence in the compelling industrial rationale of this deal and the growth opportunities for both companies."

Terex paid €45.50 per share for the business representing a 25 percent premium to the closing share price as of April 29th.