German Friedrich Grohe AG Co.KG may by 20 percent share of Zhongyu(2/15/2011)

German Grohe announced on February 14, will purchase in Frankfurt listed Chinese sanitary products enterprise ZhongYu sanitary ware Co., LTD about 20 percent of the shares, and is expected to purchase amount in 1890 million euros or so.

Grohe through its wholly owned Asia Co., LTD (AG) started Grohe Asia voluntary public takeover offer intention, the goal is ZhongYu sanitery all current. ZhongYu sanitary 9.99% Grohe currently has the shares, aim to increase shareholding more than 30%, that to increase by about 20% of the shares.

Grohe gave bid 13.50 euros per share. Mapping says, a bid of more than ZhongYu sanitary shares in recent three months of volume weighted average Germany domestic securities trading prices higher than estimated 5-6%.

With ZhongYu sanitary, Grohe in October 2009 has started cooperation, ZhongYu sanitary agreed as mapping the company's products in the Chinese market, when ZhongYu sanitery seller promised development referrals 50 region dealers, sales of the total number of mapping products set up shop in 2010 to reach 500 or so.

2010 sales for Grohe is 9.8 billion euros year-on-year, 19%, interest, tax, depreciation and amortisation earnings for 2 billion euros before year-on-year, 29%. ZhongYu sanitary says the company in China in the field of wei yu with about 12% of the market share.

Grohe CEO David j. said since both parties current cooperation is very satisfied, and expect further expand cooperation.

(Author Mosaic and Tile, China Leiyuan 2/15/2011)

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