While the alliance has been successful in certain areas, the parties have agreed that it is in the companies’ interest to pursue their respective strategies independently,” Konecranes said.
Konecranes will tender all its 5,950,000 Kito Corporation (Kito) shares to be repurchased by Kito.
Konecranes will receive approximately €48m from the sale of the shares and it will book a capital gain of approximately €6m as an associated company item in its January-September 2016 interim results.
The non-exclusive cross-distribution arrangements between the companies remain valid. Konecranes will continue to sell Kito manual products (chain hoists and lever hoists) using the Konecranes brands, whereas Kito will continue to sell wire rope hoists made by Konecranes under its own brands.
The dissolution of the strategic alliance will allow Kito to participate in the bidding process for Stahl CraneSystems that Konecranes has committed to divest in relation to its pending acquisition of Terex’s MHPS business.
