Hengeler Mueller advises Techmation on investment in PA Power Automation
20. February 2017
The Taiwanese control manufacturer Techmation Co. Ltd. (“Techmation”), Taipei/Taiwan, has signed an Investment Agreement with the management board of PA Power Automation AG with regard to a significant participation. As part of a capital increase against cash contribution and excluding the subscription rights of the shareholders, Techmation will subscribe 1,278,469 new shares of PA Power Automation AG at a nominal value of around EUR 2.56 per share via its Luxembourg subsidiary Tech Euro S.à.r.l.. With a participation of 19.88 percent Tech Euro S.à.r.l. will be the largest single shareholder of PA Power Automation AG. The proceeds from the capital increase shall be used as growth capital for research and development, sales and marketing.
Techmation belongs to Chinese Ningbo Techmation Co. Ltd., which is specialized in automated system solutions for injection molders. With a turnover of around RMB 387 m (around EUR 52 m) in 2015 and a current market capitalization of around 4.8 bn RMB (around EUR 647 m) Shanghai-listed Ningbo Techmation Co. Ltd. is among the established producers of the Asian market.
PA Power Automation AG with registered seat in Pleidelsheim is a German high‐tech company specializing in pc‐based cnc automation.
Hengeler Mueller advised Techmation on the transaction. The Hengeler Mueller team included partners Christian Möller, Changfeng Tu (both M&A, Shanghai) and Dirk Busch (Capital Markets, Düsseldorf) as well as associates Ye Huo, Caspar Haarmann, Jesco Lindner and Tianyuan Zhuang, (all M&A, Düsseldorf).