Shanghai Electric opts not to trigger buyout offer for Manz

Shanghai Electric Group Co Ltd (HKG:2727) chose not to exercise an option that would have triggered a mandatory offer to purchase more shares of Manz AG's (ETR:M5Z), the latter said today.

Dieter Manz, the chief executive and founder of the German technology company, remains the primary shareholder of the company with a 24.66% stake. "With an ownership share of 19.67%, Shanghai Electric is an anchor shareholder and, at the same time, an important strategic partner for the further corporate development of Manz AG," he said.

Shanghai Electric invested in Manz as part of a capital increase in May last year. It had an option to conclude a voting agreement with Dieter Manz by May 24, 2017, under which the voting rights from the shares held by Dieter Manz would have also been attributed to Shanghai Electric. This would have triggered a mandatory offer, in which case Dieter Manz would have been obligated to sell as many shares as needed for Shanghai Electric to reach a 30.1% participating interest.

According to Dieter Manz, the companies have created a win-win situation. "Through strategic cooperation with Shanghai Electric, Manz has obtained even better access to the highly attractive Chinese market. At the same time, Shanghai Electric can realize the goal of further development and establishment of CIGS technology in China without additional investment in Manz AG, through participation in the joint ventures," he said.

In January this year Manz agreed with Shanghai Electric and coal supplier Shenhua Group Co Ltd to set up two separate CIGS (copper indium gallium selenide) thin-film solar joint ventures, one focused on research and development (R&D) and one on equipment supply.

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