14.02.2017
Grammer AG DE0005895403
DGAP-News: Grammer AG and Ningbo Jifeng Auto Parts plan strategic partnership
DGAP-News: Grammer AG / Key word(s): Corporate Action
Grammer AG and Ningbo Jifeng Auto Parts plan strategic partnership
14.02.2017 / 08:10
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Grammer AG and Ningbo Jifeng Auto Parts plan strategic partnership
Strategic partnership between Ningbo Jifeng and Grammer to improve
future joint competitive position in particular in the Chinese
automotive market
A Ningbo Jifeng associated company subscribes to a EUR 60 million
mandatory convertible bond representing approximately 9.2% of the
current share capital of Grammer AG under the exclusion of subscription
rights
Amberg, February 14, 2017 - The two automotive components suppliers Grammer
AG and Ningbo Jifeng Auto Parts Co. have today announced their joint
intention to form a strategic partnership. The strategic partnership will
improve the joint competitive position of the two internationally active
automotive interior specialists, securing future growth and enhancing the
value of both companies.
Strategic partnership for joint expansion of Chinese business
The planned collaboration will allow both companies to expand their
presence in the important and attractive Chinese market and enhance their
product offerings to existing customers. The product offerings of Grammer
and Ningbo Jifeng are very complementary, addressing the high, medium as
well as low price segments.
The partnership will also improve both companies' access to local and
international OEMs. Grammer will be able to access local automotive OEMs in
China as well as alternative distribution channels and benefit from
improved purchasing conditions. Ningbo Jifeng will be able to tap into the
global resources, access and know-how of Grammer through the partnership.
As the largest and most rapidly growing automotive market worldwide, China
offers great potential for Grammer. Currently, the Chinese market accounts
for approximately 15% of Grammer's global automotive revenues.
Ningbo Jifeng and Grammer will continue to explore the possibility of joint
projects as well as joint ventures in the Chinese and potentially other
markets.
Automotive OEMs welcome joint partnership
Leading automotive OEMs and principal customers explicitly welcome the
planned strategic partnership between Grammer and Ningbo Jifeng. Both
companies are long-standing and reliable partners to the automotive
industry. From the customer point of view, the participation of Ningbo
Jifeng helps to enlarge the shareholder base of Grammer AG.
Ningbo Jifeng's associated company subscribes to a mandatory convertible
bond, which will enlarge the shareholder base of Grammer AG
As part of the partnership, an associated company of Ningbo Jifeng has
subscribed to a mandatory convertible bond representing approximately 9.2%
of the share capital of Grammer, issued under the exclusion of subscription
rights. The convertible bond will be converted into approximately 1,1
million voting shares of Grammer AG at the latest one year after issuance,
if the bondholder has not exercised its conversion right before. The total
proceeds to Grammer from the issuance will be EUR 60 million. Upon
conversion, Ningbo Jifeng through its associate will become a significant
shareholder of Grammer AG, reinforcing the companies' joint strategic
partnership.
"We have been operating our own plants in China for many years and want to
substantially expand our presence in the world's largest market for
commercial and passenger vehicles. There is significant growth potential in
China and we are very pleased to have Ningbo Jifeng as a strong partner for
our automotive business in China. The future strategic partnership will
open up additional possibilities for us to reach and supply additional
local Chinese customers with our innovative products," says Hartmut Müller,
CEO of Grammer. "At the same time, an associated company of Ningbo Jifeng
will become a new shareholder enlarging Grammer's shareholder base in the
interests of all shareholders, customers and employees," Hartmut Müller
added.
"Grammer enjoys an outstanding international reputation as a leading,
innovative supplier. As a result, we are very proud to enter into the
envisaged joint partnership. Our group's investment in Grammer solidifies
our strategic partnership and we are in full support of the successful
course which Grammer's management team has been pursuing over recent
years," said Yiping Wang, CEO and Chairman of Ningbo Jifeng Auto Parts.
Business Description of Ningbo Jifeng Auto Parts Co. and Grammer AG
Ningbo Jifeng Auto Parts Co. is an international automotive component
supplier, specializing in interior parts, and one of the leading producers
of headrests and armrests in China with around 2,600 employees in locations
in China, Europe and Canada. Its customers include leading tier-1 system
producers as well as local and international automotive OEMs. Incorporated
in 1996 in Ningbo, China, Ningbo Jifeng Auto Parts Co. has been listed on
the Shanghai stock exchange since 2015 and currently has a market
capitalization exceeding EUR 1 billion.
Grammer AG is a global components supplier serving the automotive and
commercial vehicles industry and specializes in the development and
production of components for automotive interiors as well as seat systems
for offroad vehicles, trucks, buses and railway. With over 12,000
employees, the Grammer Group operates roughly 40 facilities globally, in
which it produces headrests, armrests and center consoles for the
automotive market as well as suspended driver and passenger seats for
commercial vehicles. The Grammer Group realized revenue of around EUR 1.7
billion in 2016. Grammer has been listed on the stock exchange since 1996
and currently has a market capitalization of around EUR 650 million.
Globally, Grammer currently generates revenues of EUR 1.2 billion in the
Automotive-segment. China, the largest automotive market globally,
contributes 15% to overall automotive revenues.
About Ningbo Jifeng Auto Parts Co., Ltd.
Incorporated in 1996, Ningbo Jifeng Auto Parts Co., Ltd. is domiciled in
the Eastern Chinese coastal city of Ningbo. In the automotive segment it
specializes in the production and assembly of headrests as well as seat and
door armrests predominantly for passenger vehicles. Its customers include
international premium automotive OEMs.
Ningbo Jifeng has around 2,600 employees at a total of eight production
sites in China, Europe and Canada. In 2015, it achieved revenue of a total
of around EUR 140 million. China accounts for 87 percent of its business
and the United States, Europe and Japan for 13 percent.
Ningbo Jifeng is listed on the Shanghai stock exchange under ISIN
CNE100001V94.
About Grammer AG
Located in Amberg, Germany, Grammer AG specializes in the development and
production of components and systems for automotive interiors as well as
suspended driver and passenger seats for onroad and offroad vehicles. In
the Automotive Division, Grammer supplies headrests, armrests, center
console systems and high-quality interior components and operating systems
to premium automakers and automotive system suppliers. The Seating Systems
Division comprises seats for the truck and offroad seat segments (tractors,
construction machinery, forklifts) as well as train and bus seats.
With over 12,000 employees in 32 fully consolidated companies Grammer
operates in 20 countries around the world. The Grammer Group realized
revenue of circa EUR 1.7 billion in 2016.
Grammer shares (ISIN DE0005895403) are listed in the SDAX and traded on the
Frankfurt and Munich stock exchanges via the electronic trading system
Xetra.
Contact:
GRAMMER AG
Ralf Hoppe
Phone: 0049 9621 66 2200
[email protected]
---------------------------------------------------------------------------
14.02.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Grammer AG
Georg-Grammer-Str. 2
92224 Amberg
Germany
Phone: +49 (0)9621 66-0
Fax: +49 (0)9621 66-1000
E-mail: [email protected]
Internet: www.grammer.com
ISIN: DE0005895403, DE0005895403
WKN: 589540, 589540
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Stuttgart, Tradegate Exchange
End of News DGAP News Service
---------------------------------------------------------------------------
544203 14.02.2017
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Grammer AG ISIN: DE0005895403 können Sie bei EQS abrufen
Automobilzulieferer , 589540 , GMM , XETR:GMM