US mining OEM equipment supplier Joy Global Inc yesterday said that it will buy the remaining stake it does not already own in China's International Mining Machinery Holdings Ltd (IMM), a maker of coal-mining equipment, for about HK$3.4 billion ($437.80 million).
Joy Global, which currently owns 69.2 per cent of IMM, is planning to buy the rest of the Beijing-based company at HK$8.50 per share through its wholly-owned Hong Kong subsidiary.
In July 2011, Milwaukee, Wisconsin-based Joy Global acquired 41 per cent of Hong Kong-listed IMM at HKD 8.50 per share or $585 million from TJCC Holdings Limited, a unit of New York-based private equity firm The Jordan Company.
Under Hong Kong law, buying 41 per cent triggers a mandatory offer for the rest of the company. Joy Global had said at that time that it would make an offer for the remaining 59 per cent of IMM once the share purchase agreement is completed.
It later acquired 30.8 per cent in two tranches from the open market.
IMM is a leading designer and manufacturer of underground long-wall coal mining equipment in China. Its products include road-headers, shearers, armoured-face conveyors and related products, and electric control systems.