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Information from Ekol owners related to the press news from July 7, 2014 referring about the acquisition of Ekol by Chinese company ShaanGu

On July 7, 2014 the newspapers informed that Chinese company ShaanGu will acquire 100% of the company Ekol.

Due to the certain incorrectness of the information, the owners of the company Ekol would like to inform their business partners about current status of the discussions. During the process that is managed by the advisory company REDBAENK, both sides signed LoI that defines key parameters of potential acquisition of Ekol by largest Chinese industrial blowers manufacturer.

In case both sides will reach final agreement, ShaanGu will acquire 75% stake in the company Ekol. Current owners will remain minority shareholders and will continue in their current managerial roles. The joint goal of both companies would be also to further develop Ekol’s competences, especially in the form of design and delivery of specialised turbines for blowers and for turbine driven trains that are delivered by ShaanGu on Asian market. Moreover, the goal also be further commercial expansion of Ekol on Asian markets in other areas of Ekol’s current business segments – boilers, gas turbines and EPC delivery of smaller power plants.

Part of the potential agreement between Shaangu a Ekol owners is also a future option on acquisition of remaining 25% within next 7 years following the acquisition of majority stake.

Owners of Ekol expect that potential connection of the company with leading Chinese producer of blowers will generate many new commercial opportunities not only on Asian market and the production volume in Ekol will be further growing.

 

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