Zoomlion to Sell Nearly 30% Stake in RoadRover for 900 Million Yuan

MT Newswires Live10-14

Zoomlion Heavy Industry Science and Technology (SHE:000157, HKG:1157) has conditionally agreed to sell a 29.99% stake in Shenzhen RoadRover Technology (SHE:002813) for 899.7 million yuan, according to a Tuesday filing with the Hong Kong stock exchange.

The construction machinery maker will sell 36 million shares at 25 yuan each to Yuanzhuo Angel (Longyou) New Energy Partnership.

Following completion, Zoomlion will make a partial tender offer for a further 16.8 million RoadRover shares at the same price, subject to applicable regulations.

Assuming full acceptance of the tender offer, Zoomlion expects to receive an additional 420 million yuan and retain a 9.83% stake in RoadRover.

The company would then cease to be a subsidiary, and its results would no longer be consolidated into Zoomlion's financial statements.

Zoomlion expects to record a profit of about 288 million yuan from the transactions, subject to a final audit.

The company will use the proceeds to support its core businesses and replenish working capital. Completion remains subject to conditions, including regulatory approvals.

RoadRover's shares jumped 10% in recent trade in Shenzhen.

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