CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 31 MARCH 2015, AT 10 AM (EEST)
Cargotec becomes a sole owner in China Crane Investment Holdings Limited
Cargotec and CAG Marine Holding Limited, which is in turn wholly owned by Carlyle Asia Growth Partners IV, L.P. and CAGP IV Coinvestment, L.P. (jointly referred to as "Carlyle") have jointly owned China Crane Investment Holdings Limited (China Crane), an investment company, which has owned 18.75% of the shares in Jiangsu Rainbow Heavy Industries Co., Ltd (RHI) as at 18 March 2015. Carlyle has decided to sell their portion of China Crane's stake in RHI and hence exit RHI, and the related transactions have been executed. Cargotec's aggregate ownership in RHI remains unchanged at 9.19% and following Carlyle's exit Cargotec will own 100% of China Crane. Cargotec will continue to account for its ownership in RHI under the equity method as an associated company. The book value of the ownership at 31 December 2014 was EUR 59.0 million. RHI shares are listed on the Shenzhen Stock Exchange in China.
In July 2011, Cargotec announced plans to establish a joint venture with RHI to strengthen presence in China. In connection with the establishment of the joint venture Rainbow-Cargotec Industries Co., Ltd (RCI), Cargotec strengthened its strategic partnership with RHI by purchasing RHI shares from Carlyle, who owned 100% of China Crane at that time. RCI has today an important role in Cargotec's global supply chain and manufactures port and offshore cranes for Cargotec's Kalmar and MacGregor business areas. Hence, RHI continues as a long-term partner for Cargotec.
For further information, please contact:
Eeva Sipilä, Executive Vice President and CFO, tel. +358 20 777 4104
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084
Cargotec shapes the cargo handling industry for the benefit of its customers and shareholders. Cargotec's business areas MacGregor, Kalmar and Hiab are recognised leaders in cargo and load handling solutions around the world. Their global network is positioned close to customers and offers extensive services that ensure a continuous, reliable and sustainable performance according to customers' needs. Cargotec's sales totalled approximately EUR 3.4 billion in 2014 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki Ltd under symbol CGCBV. www.cargotec.com