King & Wood Mallesons advises Weichai Power in deal to increase equity stake in KION

KION was successfully listed on the Frankfurt Stock Exchange in Germany on 2 July 2013. King & Wood Mallesons advised Weichai Power through its wholly owned Luxembourg subsidiary to increase its equity stake in KION to 30 per cent of the total issued shares after listing through exercising its call options to further strengthen its control of KION.

This also marked the completion of phase two of the acquisition of KION Group by Weichai Power. In 2012, King & Wood Mallesons advised Weichai Power to invest a total of €738m in KION, of which €467m was used to acquire a 25 per cent stake in KION by way of capital increase.

The remaining €271m was used to acquire a majority stake of 70 per cent in KION’s hydraulics business, which was carved out from Linde Hydraulics under KION.

The King & Wood Mallesons legal team was fully engaged in the whole facet of KION’s IPO plan, the design of the deal structure, drafting of the legal documents, negotiations with KION Group and the financing arrangements.

The law firm acted as the lead counsel in this project. Its team was led by partner Xu Ping.