The approval was received Thursday from the Anti-monopoly Bureau of the Ministry of Commerce.
Joy, which announced the deal in July, can now purchase IMM shares equal to 41.1% of IMM’s outstanding common stock. The agreed price given current exchange rates is $US584 million, of a per-share price of HKDD8.50.
The two anticipate the share purchase to close by December 30. At that time, Joy Global will own about 69.2% of IMM’s outstanding stock.
Completion of the share purchase agreement is expected to take place by December 30, 2011. After closing, Joy Global will own approximately 69.2% of IMM's outstanding common stock.
“Joy Global will [then] be required to make unconditional cash tender offers for the remaining outstanding shares of IMM common stock and all outstanding IMM share options pursuant to the Hong Kong Takeovers Code,” Joy officials said.
The tender offer will be initiated by Joy Global’s Hong Kong subsidiary Joy Global Asia Limited. It will be subject to its own terms and conditions, and the offer document is subject to Hong Kong Securities and Futures Commission approval.
Joy Global completed a $1.1 billion buyout of surface OEM LeTourneau Technologies in June.
The company markets both surface mining equipment under the name P&H Mining Equipment as well as underground mining through Joy Mining Machinery.
