Germany's Man Group is buying convertible notes and existing shares of Chinese truck manufacturer Sinotruk to achieve a 25% equity ownership plus one share for an outlay of 560 million $789 million as it seeks to deepen its presence in China.
Hong Kong-listed Sinotruk will issue 486 million worth of convertible notes due 2012 to Munich-headquartered Man. Man, which is the third-largest heavy truck manufacturer in the world, has also agreed to purchase 4.2% of the Chinese company's existing share capital from its controlling shareholder for 74 million. The shares will be subject to a two-year lockup period.
The conversion price of the note and the acquisition price of the existing shares are both...
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