Schindler : acquires majority in Chinese joint venture
July 09, 2014 at 12:11 pm
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In 2011 Schindler established a joint venture with the Chinese elevator and escalator company and acquired a 46% stake. Schindler has now reached an agreement with the majority shareholders of XJ-Schindler (Xuchang) Elevator Co. Ltd which allows Schindler to purchase another 5% of the company. The agreement furthermore gives Schindler the right to acquire a further 5% of the company in each of the forthcoming 3 years and to raise its participation to 66% in total by 2017. The first call option is expected to be exercised in August 2014 and is subject to approval by the relevant Chinese authorities. After approval, XJ-Schindler will be consolidated in the Group financial statements. This will result in an estimated valuation gain of CHF 110 million after tax on the existing 46% stake.
XJ-Schindler, based in Henan Province, is a leading Chinese elevator and escalator company, with its own design, manufacturing, installation and maintenance operations. XJ-Schindler is expected to generate revenues of over CHF 300 million for the full year 2014.
Schindler has been present in China since the early 1980s. With a majority stake in XJ-Schindler, the Schindler Group strengthens its position in the residential and affordable-housing area, currently China's largest elevator market segment.
Schindler Holding AG is a Switzerland-based holding company that specializes in the manufacture of escalators, elevators and moving walks. It operates globally within one main segment: Elevators and Escalators. The Elevators and Escalators segment provides a range of elevators for different applications, including freight and special elevators, high-rise elevators, residential elevators and commercial elevators. It also offers commercial and public transport escalators, as well as inclined and horizontal moving walks. It's affiliated company, ALSO Holding AG, which provided information and communications technology and consumer electronics in the wholesale and logistics sectors, was disposed during 2011 and merged with Actebis GmbH, forming ALSO-Actebis Holding AG. In June 2014, closed the real estate development project Mall of Switzerland (formerly EbiSquare) together with Halter AG and sold its stake in EbiSquare AG to Halter AG