China's Wencan to Buy French Car Parts Maker Le Belier for USD278 Million
Dou Shicong
DATE:  Dec 09 2019
/ SOURCE:  yicai
China's Wencan to Buy French Car Parts Maker Le Belier for USD278 Million China's Wencan to Buy French Car Parts Maker Le Belier for USD278 Million

(Yicai Global) Dec. 9 -- Wencan Die Casting, which makes precision components for the high-end car market, plans to pay EUR251 million (USD278 million) to buy listed French parts maker Le Belier as it broadens its horizons overseas.

The Guangdong-based firm said it plans to buy 4.1 million shares at EUR38.18 (USD42.21) apiece, making up 62 percent of the target's equity, the buyer said in a statement yesterday. After completing the transaction, it intends to buy the remaining stock, floated on the Euronext, by issuing a mandatory tender offer at the same price.

Le Belier's shares [EPA:BELI] closed at EUR29.60 on Dec. 6.

The deal gives Wencan localized production facilities and tech hubs in several major automotive markets, it added, saying both companies mostly produce precision aluminum alloy castings so the move will give Wencan a much larger market share. The buyer's main products include parts for engines, gearboxes, chassis and brake systems made at three factories in China.

Shares in Wencan rose for suspiciously for several days before the company announced on Dec. 4 that it was planning to purchase an unnamed European parts maker, though the securities regulator has not disclosed any plans to investigate so far. Its stock [SHA:603348] rose again today, sitting 3.5 percent higher at CNY20.00 (USD2.84) as of 10.20 a.m.

Founded in 1994, Le Belier made EUR27.2 million in profit last year on revenue of EUR359 million. It has 12 factories around the globe, making parts for the likes of Bosch, BMW and Daimler, and generated some 20.4 percent of its revenue from China last year, second only to Europe at 64.2 percent.

Editor: James Boynton

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Keywords:   Wencan Die Casting,Le Belier