(Finance) – KME SE, main subsidiary of KME Groupsigned a sale agreement with Golden Dragon Precise Copper Tube Group (“Golden Dragon”) for its 50% stake in the KMD joint venture, which was established between KME and Golden Dragon in 2014. At the same time , KME has entered into an agreement to repurchase 100% of the shares of KMD Connectors Stolberg GmbH, which had been contributed by KME to the KMD joint venture in 2014.
The price of the sale of 50% of the KMD joint venture is approximately USD 50 million and the repurchase price of Stolberg is approximately USD 17 million. In addition, KME will collect the intercompany positions and the currently outstanding shareholder loan for a total amount of approximately USD 20 million.
Closing of the transactions is subject to the fulfillment of certain conditions precedent, including the approval by the competent antitrust supervisory authorities.
This new agreement – explains a note – represents a further milestone in KME’s general deleveraging strategy and in the new regional focus, following the most recent geopolitical changes. Furthermore, the Stolberg buy-back is an important step to increase KME’s efficiency in supporting the electric transition and providing the best possible customer service.