Joy Global Inc. (JOY) on Friday announced the extension of the tender offer that its wholly owned Hong Kong subsidiary, Joy Global Asia Ltd., is conducting for the shares of common stock it does not currently own of International Mining Machinery Holdings Ltd., a manufacturer of underground mining equipment in China.
In the tender offer, which was announced on January 6, Joy Global Asia offered to purchase the remaining shares of International Mining Machinery common stock, or about 399.7 million shares, for HK$8.50 per share and to cancel all outstanding options to purchase International Mining Machinery common stock, representing about 17.9 million shares, for the amount by which HK$8.50 exceeds the exercise price of each option.
To date, Joy Global Asia has received acceptances in respect of about 370.1 million shares of International Mining Machinery common stock and elections to cancel 100% of all outstanding options to purchase International Mining Machinery common stock.
Joy Global will pay aggregate consideration of about $420 million for such shares and options. Combined with shares it previously owned, the acceptances of the tender offer to date have resulted in Joy Global Asia holding about 97.7% of all of the shares of International Mining Machinery common stock.
The tender offer to purchase the remaining shares of International Mining Machinery common stock, which was to have expired on February 3, will now expire on February 10 at 4:00 p.m., Hong Kong time.
With 97.7% of the shares of International Mining Machinery common stock, Joy Global Asia plans to exercise its right to compulsorily acquire those shares of International Mining Machinery common stock which have not been acquired by Joy Global Asia under the offer.
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