KION Group was successfully listed on the Frankfurt Stock Exchange in Germany on July 2, 2013. King & Wood Mallesons successfully advised Weichai Power through its wholly owned Luxembourg subsidiary to increase its equity stake in KION to 30% of the total issued shares after listing through exercising its call options to further strengthen its control of KION.
This also marked the completion of phase 2 of the acquisition of Kion Group by Weichai Power. Previously, in 2012, King & Wood Mallesons successfully advised Weichai Power to invest a total of EUR 738 million in KION, of which EUR 467 million was used to acquire a 25% stake in KION by way of capital increase. The remaining EUR 271 million was used to acquire a majority stake of 70% in KION’s hydraulics business, which was carved out from Linde Hydraulics under KION.
Weichai Power has a long track record of success and enhances its competitive edge with “Operating Capital and Product Management” as the cornerstone of its international strategic management. Weichai Power has become one of the most comprehensive businesses among leading auto and equipment manufacturers in China by successfully developing its four major businesses , namely power assembly (engine, gearbox, axle), vehicles and machines, hydraulic control and automobile electronics and parts, with the most complete and competitive industrial chains, core skills and products in the industrial equipment industry.
Comprised of dozens of lawyers, the King & Wood Mallesons legal team was fully engaged in the whole facet of the Kion’s IPO plan, the design of the deal structure, drafting of the legal documents, negotiations with Kion Group and the financing arrangements.
King & Wood Mallesons acted as the lead counsel in this project and was led by Partner Xu Ping.
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