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        IMA

Jiye to acquire majority share in Grammer

German parts manufacturer Grammer AG

Chinese automotive parts supplier Jiye Auto Parts has acquired a strategic majority share in German parts manufacturer Grammer AG. In a statement, Grammer said that Jiye Auto Parts, a company associated with Chinese automotive supplier Ningbo Jifeng and Grammer’s strategic partner, said that 48.45% of Grammer’s shareholders had accepted Jiye’s offer. Ningbo Jifeng’s associated companies currently hold 25.56% of Grammer’s shares.

With this recent undertaking, it will raise Jifeng’s shareholding in Grammer to around 74%.

The acceptance period for the remaining shareholders runs for a further 14 days, until 23 August.

Grammer says it has had a strategic partnership with Ningbo Jifeng since February 2017. It added that the offer is also linked to a far-reaching business combination agreement guaranteeing jobs, facilities, expertise and brand names of Grammer Group over the coming years and securing the company’s independence and growth strategy.

The offer, it also said, is no longer subject to regulatory clearances or other closing conditions. The transaction is expected to be completed in the third quarter of 2018.

The Chinese company had earlier made its offer to buy Grammer’s remaining shares in May, but faced disagreement from the company’s biggest shareholder, Cascade International Investment GmbH, which is controlled by Bosnian billionaire family Hastor.

Cascade had said it found the offer unsatisfactory since Grammer had in May acquired US thermoplastics components company Toledo Molding & Die. Grammer acquired 100% of the share capital of Toledo, funding the acquisition fully with debt at attractive financing terms, it said. The acquisition is to allow Grammer to expand into the US market.

Located in Amberg, Grammer AG specialises in the development and production of components and systems for automotive interiors as well as suspension driver and passenger seats for on-road and off-road vehicles.

With over 13,000 employees, Grammer operates in 19 countries around the world.

Grammer shares are listed in the SDAX and traded on the Frankfurt and Munich stock exchanges.

(IMA)


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