KraussMaffei expects to gain from Sinochem equity move

Parsdorf, Germany -  Sinochem is progressing plans to convert existing shareholder loans into equity for KraussMaffei Group’s parent CNCE Lux*, polymer processing machinery maker KraussMaffei (KM) announced in December. 

The €478-million transaction, said KM, will “significantly improve” its capital structure, open up new investment opportunities and ensure “that we can position the company securely for the future.” 

The planned debt-to-equity conversion will lead to a change in ownership within the Sinochem group structure, according to the 13 Dec press statement.

To date, CNCE Lux has been wholly-owned by KraussMaffei Co. Ltd (KMCL), a company listed on the Shanghai Stock Exchange in China. 

With the completion of the transaction, CNCE Lux will be 90.76% owned by another Sinochem company CNCE Group (Hong Kong) Co. Ltd.

KMCL will continue to be listed on the Shanghai Stock Exchange: holding less than 10% of the shares in CNCE Lux / KraussMaffei Group. 

CNCE Lux, including KraussMaffei Group will therefore no longer be included in the scope of consolidation of KMCL: and the results no longer incorporated in the financial reporting of the listed company.

“This will significantly reduce the mandatory financial reporting and administrative workload related to this disclosures of the KraussMaffei Group and will enable it to allocate more resources to its core business, said KM.

*China National Chemical Equipment (Luxembourg) Sárl