Magni to repurchase Dingli stake

Italian telehandler manufacturer Magni has repurchased the 20 percent stake held by Chinese aerial lift manufacture Dingli since 2016. Magni paid €61.4 million for the stake which Dingli acquired for €14. 4 million. See: Dingli takes stake in Magni

Since the deal kicked off in 2016 Magni has helped design the Dingli range of boom lifts and sold Dingli scissor lifts in several European countries under its own brand. The two companies have said that they will continue to run their sales and design cooperation which has been beneficial to both partners - Magni claims to have aerial lift revenues in the region of €100 million.

This announcement follows the recent news from Dingli that it will acquire a larger stake in California based company MEC Aerial Work Platforms, with the aim to acquire 100 percent of the equity in the medium term. See: Dingli ups its stake in MEC

Vertikal Comment

Magni’s desire to put a little distance between itself and Dingli, has been rumoured for most of this year, if not longer. There was talk of them even ending their sales agreement, after Dingli began selling its machines in markets that Magni had its domain. How accurate these rumours are is hard to say. Any time we have asked we have been told there was nothing to them, but such denials were often not particularly convincing.

For family owned Magni regaining full control is certainly desirable, and with Ricardo Magni celebrating his 70th birthday this year, the future ownership and control of the company he has built up from scratch is likely to be increasingly important. Dingli chief executive and founder Xu Shugen might find the €61 million handy for his other overseas ventures which include a stake in Teupen as well as the MEC plans. Quadrupling his investment - equating to roughly €6 million a year on a €14.4 million stake, is also a satisfying outcome.