Midea is offering €115 a share (US$130.10), a 60 percent premium over Kuka’s closing price of €72.05 a share on 3 February 2016 and a premium of 36 percent to Kuka’s share price of €84.41 at close on Tuesday. Midea said it had a 13.5 percent stake in Kuka and was seeking to become the largest shareholder by raising its stake beyond 30 percent. The deal values Kuka at €4.6 billion (US$5.2 billion) and a 30 percent stake would make Midea its biggest shareholder, Bloomberg News reported.
Kuka is known for its articulated robots, which can autonomously handle a wide variety of tasks on the shop floor, including welding, coating and assembly. It is one of the many companies that are pushing Germany as a global leader in industrial automation.
Rather than a complete takeover, Midea plans to keep Kuka’s management intact and to keep the company listed to better understand and adopt Western technology. It would not implement a profit transfer or domination agreement.
“Kuka is in excellent condition today and we are committed to investing in Kuka's employees, brand, intellectual property and facilities to further support the company's development,” Midea chairman and chief executive Paul Fang said in a statement.
Midea said it aims to expand Kuka’s know-how in robotics for general industry and logistics applications and open doors for better access to Chinese markets.
