Schindler has reached an agreement with the majority shareholders of XJ-Schindler (Xuchang) Elevator Co. Ltd to increase its participation in 2014 from 46% to 51%.
In 2011 Schindler established a joint venture with the Chinese elevator and escalator company and acquired a 46% stake. Schindler has now reached an agreement with the majority shareholders of XJ-Schindler (Xuchang) Elevator Co. Ltd which allows Schindler to purchase another 5% of the company. The agreement furthermore gives Schindler the right to acquire a further 5% of the company in each of the forthcoming 3 years and to raise its participation to 66% in total by 2017.
The first call option is expected to be exercised in August 2014 and is subject to approval by the relevant Chinese authorities. After approval, XJ-Schindler will be consolidated in the Group financial statements. This will result in an estimated valuation gain of CHF 110 million after tax on the existing 46% stake.
XJ-Schindler, based in Henan Province, is a leading Chinese elevator and escalator company, with its own design, manufacturing, installation and maintenance operations. XJ-Schindler is expected to generate revenues of over CHF 300 million for the full year 2014.
Schindler has been present in China since the early 1980s. With a majority stake in XJ-Schindler, the Schindler Group strengthens its position in the residential and affordable-housing area, currently China’s largest elevator market segment.