Sinochem completes KraussMaffei debt-to-equity conversion

Parsdorf, Germany - Sinochem has completed the conversion of its shareholder loans into equity for CNCE Lux*, the parent group of German polymer processing machinery maker KraussMaffei Group (KM).

The previously announced €478-million transaction will “significantly improve” capital structure and financial performance of the machinery maker, KM reported 10 Jan.

The transaction is also expected to open up new investment opportunities and ensure “that we can position the company securely for the future,” the KM statement said.

The debt-to-equity conversion has in effect led to a change in ownership within the Sinochem group structure.

Up until the now, CNCE Lux was 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