Domination and Profit and Loss Transfer Agreement Effective
Terex Corporation (NYSE: TEX) today announced that the Domination and Profit and Loss Transfer Agreement between Terex and Demag Cranes was registered in the commercial register on April 18, 2012 and is now effective.
Following Terex's purchase of approximately 82% of the shares outstanding of Demag Cranes AG in 2011, Demag Cranes' management board and Terex signed the DPLA in January 2012 that was then approved by Demag Cranes shareholders last month. The effectiveness of the DPLA allows Terex to fully integrate Demag Cranes, including the ability to direct operational decisions as well as pooling of any and all financial profits and cash flows. Remaining shareholders can now either tender their shares for €45.52 per share or receive an annual guaranteed dividend payment.
As a fifth segment of Terex Corporation, Demag Cranes has been consolidated from a financial reporting standpoint for the last few quarters and now following effectiveness of the DPLA, Terex and Demag Cranes will begin the operational consolidation as well. The Company is pleased the Domination Agreement process has been completed and looks forward to fully integrating Demag Cranes with the Company.
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