German Vossloh sells Locomotive business to China's CRRC

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DutchRailnut
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German Vossloh sells Locomotive business to China's CRRC

Post by DutchRailnut » Tue Aug 27, 2019 7:26 pm

https://railcolornews.com/2019/08/26/de ... s-to-crrc/

day’s press statement from Vossloh:

Today, Vossloh AG signed a contract for the sale of its Locomotives business unit, currently reported as discontinued operations, to CRRC Zhuzhou Locomotive Co., Ltd., Zhuzhou, China (CRRC ZELC), a subsidiary of the China Railway Rolling Stock Corporation Ltd. (CRRC). CRRC is the largest rolling stock manufacturer in the world.

The agreed purchase price is still subject to adjustment at the closing date, depending on the development of various balance sheet positions, and is projected to amount to a low single-digit million figure. Vossloh is under this agreement due to receive proceeds from the future sale of certain assets, resulting in expected cash inflows of approx. €10 million in the next few years. On this basis, Vossloh expects an additional negative impact on the result from discontinued operations in the amount of approx. €30 to 35 million.

CRRC ZELC has also contractually agreed to take over all guarantees and sureties that Vossloh AG had taken on for the Locomotives business unit. The economic transfer to the buyer will take place once the transaction is completed. The Supervisory Board of Vossloh AG has already approved the divestiture. Until the transaction is completed, various conditions must still be fulfilled. The transaction is still subject to authorization by the respective authorities in Europe and China, specifically merger control and foreign trade law clearances as well as standard approvals required from the Chinese authorities. Completion is expected in the next few months.
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