The hottest KKR reached a strategic cooperation wi

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KKR has reached a strategic cooperation with Rex lighting to acquire the majority equity of Rex lighting China's lighting business

after the completion of the delivery, KKR will hold 70% equity of Rex China, and will hold the remaining 30% equity, and obtain cash consideration

on August 11, KKR and Rex lighting Holdings Co., Ltd. (hereinafter referred to as "Rex lighting" or "the company") (Stock Code: 02222) announced the signing of a share purchase agreement. According to the agreement, KKR will reach a strategic cooperation with Rex lighting, but the profit is high. It will acquire the majority equity of Rex lighting China lighting business (hereinafter referred to as "Rex China") at an equity consideration of about $794million

KKR will complete this investment through its flagship Asia phase III. After the completion of the delivery, KKR will hold 70% equity of Rex China, and Rex lighting will hold the remaining 30% equity and obtain cash consideration

Rex China is one of the leading enterprises in China's lighting industry. Through its strong distribution network throughout China, it manufactures and sells Rex brand lighting products and provides lighting solutions to consumers and commercial customers

Yangwenjun, a KKR person and President of Greater China, said that China's lighting market has experienced rapid growth in the past 20 years and has continued to develop with the progress of technology and the introduction of new generation products. "Rex China has a wide distribution network, well-known brand influence and strong product design ability." Yang Wenjun said

Wang Donglei, chairman of Rex lighting, The board of directors of Rexroth led the complete bidding process of this transaction with the assistance of financial advisers and legal advisers if it failed to meet the requirements: "We are very happy that this sound bidding process has brought us satisfactory results. In particular, the thermoplastic composites also have the characteristics of recycling - the shareholders of Rexroth lighting will receive considerable cash consideration while continuing to hold a minority stake in Rexroth China, all shares of Rexroth international business and all shares of Rexroth China Africa lighting business."

Wang Donglei said that he believed that KKR was an ideal partner of Rexroth lighting. The two sides had a high degree of agreement on the future development of machinery and household appliance enterprises in Rexroth China facing the test of safety standards. KKR's resources and operation expertise would also help the long-term development of Rexroth China's business

in this transaction, KKR and Rex lighting will establish a joint venture, KKR will hold 70% equity of Rex China, and Rex lighting will hold the remaining 30% equity. Rexroth lighting will transfer 100% equity of Rexroth China to the joint venture jointly owned by KKR and Rexroth lighting. Rex lighting will also receive cash consideration from the transaction. The final payment and settlement depends on a number of adjustments and delivery conditions

on the premise of approval and completion of the settlement, the board of directors of Rexroth lighting will announce a special dividend of no less than HK $0.9 per share to the shareholders of Rexroth lighting. Rexroth lighting will hold a special meeting for shareholders to approve this transaction and special dividends

Rex lighting's China non lighting business, China original design manufacturer (ODM) business and international business are not included in this transaction and will continue to be owned by Rex lighting

the transaction is expected to be delivered in the fourth quarter of 2019, provided that it meets the conditions of delivery practices and is approved by regulators and shareholders

Bowers law firm, Fonda law firm and Kaye law firm acted as the legal counsel of KKR in this transaction. Fulde law firm acted as the legal adviser of Rexroth lighting, and Deloitte Corporate Financial Consulting Co., Ltd. acted as the financial adviser of Rexroth lighting


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