Joy targets remaining IMM shares

EQUIPMENT manufacturer Joy Global announced Friday that it has initiated a tender offer for the remaining shares of Chinese underground OEM International Mining Machinery Holdings that it does not already own.
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Courtesy Joy Global.

Donna Schmidt

Joy currently owns 69.2% of the common stock shares following its second acquisition of 41.1% that was completed December 29.

Its wholly owned Hong Kong subsidiary Joy Global Asia Limited is now offering to purchase IMM’s remaining outstanding common stock for HKD8.50 per share and purchase all outstanding options to purchase the China-based company’s common stock for the amount by which HKD8.50 exceeds each option’s exercise price.

Joy officials said that the tender offer, which is required by the Hong Kong Takeovers Code resulting from Joy’s acquisition of over 30% of IMM stock, will expire at 4pm Hong Kong time February 3.

The tender offer is subject to the offer document’s terms and conditions, and Joy confirmed that the documentation has been approved by the Hong Kong Securities Futures Commission.

The OEM said just before Christmas that it had received Chinese government approval for its second portion of the share deal, at which time officials indicated it would make the unconditional cash tender for the remaining shares.

Joy Global completed a $US1.1 billion buyout of surface OEM LeTourneau Technologies last June.

The company markets both surface mining equipment under the name P&H Mining Equipment as well as underground mining through Joy Mining Machinery.