Robohub.org
 

Midea now owns 85.69% of KUKA’s shares

by
21 July 2016



share this:
Image source: KUKA Aktiengesellschaft

Image source: KUKA Aktiengesellschaft

Since the announcement of the month-long tender offer by Midea to buy 49% of the shares of German robot maker KUKA AG – and private negotiations – Midea now has 85.69% of the shares.

The offer was predicated on KUKA AG having a market value of $5.2 billion, a 58% premium over the share price on the day before the announcement. At that point, Midea already owned 13.51%.

To help that offer, KUKA and Midea negotiated an agreement whereby KUKA got assurances that jobs and plants in Germany will be protected until the end of 2023 and Midea agreed not to pursue a domination agreement or de-listing of KUKA’s shares. As a result, KUKA’s management endorsed the arrangement and their two biggest shareholders tendered their shares to Midea. The public tender, plus the two big shareholders, gave Midea 72.18% of the shares. Combined with what they already owned, Midea now has 85.69% ownership of KUKA.

On July 21, through August 3, Midea announced another tender offer – with the same valuation and share price – to acquire as many more of the shares as possible.

Bloomberg reported that:

“From Midea’s point of view, the more the better. If Midea can get total control it would be greatly beneficial for their plans to expand Kuka’s business in China,” said Juliette Liu, an analyst at Yuanta Securities Co.

“We have reached an important milestone in the expansion of our partnership with Kuka, which offers great value-creation potential for both companies. The investor agreement between Kuka and Midea sets out the future cooperation in detail. We want to help Kuka to grow and expand the business, especially in China,” said Paul Fang, chairman and chief executive officer of Midea.

Bottom Line:

made-in-china-2025_300_200_80China’s government has sponsored aggressive 5-year plans to make the robotics industry in China one in which domestic companies provide the majority of robots and to change the overall status of manufacturing in China by 2025 to be high tech and high quality instead of low price and labor intensive. At present, in most cases, and particularly regarding robotics, the reverse is the case. Thus this acquisition by Midea of one of the Big Four of global robot manufacturers goes a long way toward bringing high tech and high quality in robotics to China by a now-Chinese-owned highly-thought-of robot manufacturer.



tags: , ,


Frank Tobe is the owner and publisher of The Robot Report, and is also a panel member for Robohub's Robotics by Invitation series.
Frank Tobe is the owner and publisher of The Robot Report, and is also a panel member for Robohub's Robotics by Invitation series.





Related posts :



Robot Talk Episode 90 – Robotically Augmented People

In this special live recording at the Victoria and Albert Museum, Claire chatted to Milia Helena Hasbani, Benjamin Metcalfe, and Dani Clode about robotic prosthetics and human augmentation.
21 June 2024, by

Robot Talk Episode 89 – Simone Schuerle

In the latest episode of the Robot Talk podcast, Claire chatted to Simone Schuerle from ETH Zürich all about microrobots, medicine and science.
14 June 2024, by

Robot Talk Episode 88 – Lord Ara Darzi

In the latest episode of the Robot Talk podcast, Claire chatted to Lord Ara Darzi from Imperial College London all about robotic surgery - past, present and future.
07 June 2024, by

Robot Talk Episode 87 – Isabelle Ormerod

In the latest episode of the Robot Talk podcast, Claire chatted to Isabelle Ormerod from the University of Bristol all about human-centred design and women in robotics.
31 May 2024, by

Robot Talk Episode 86 – Mario Di Castro

In the latest episode of the Robot Talk podcast, Claire chatted to Mario Di Castro from CERN all about robotic inspection and maintenance in hazardous environments.
24 May 2024, by

Congratulations to the #ICRA2024 best paper winners

The winners and finalists in the different categories have been announced.
20 May 2024, by





Robohub is supported by:




Would you like to learn how to tell impactful stories about your robot or AI system?


scicomm
training the next generation of science communicators in robotics & AI


©2024 - Association for the Understanding of Artificial Intelligence


 












©2021 - ROBOTS Association