Midea currently indirectly holds a 13.5% stake in Kuka. The completion of the takeover offer is subject to certain conditions, such as the achievement of a minimum acceptance threshold of 30% of the issued Kuka shares (including Midea's existing stake), the granting of the necessary antitrust and other regulatory approvals and the approval of Midea's shareholders. Due to the applicable legal framework, the increase of the stake to over 30% requires an offer for all outstanding shares of the Augsburg-based group. Midea now intends to offer its shareholders 115 euros per share.

Paul Fang, Chairman and CEO of Midea, commented on the announcement: "As a customer and shareholder, we are very impressed by Kuka's management and employees and have been engaged in a constructive dialog since the beginning of our engagement. Kuka is in excellent shape and we intend to continue to invest in the workforce, brand, intellectual property and production facilities to accelerate the company's growth. We believe a higher stake strikes the right balance between an independent Kuka and the opportunity to generate more growth through closer collaboration, particularly in China."

What are Midea's plans for Kuka?

One of Kuka's declared strategic focuses is the Chinese market for service robots, where Midea also sees considerable growth potential in view of rising labor costs and the aging Chinese population. Kuka aims to increase its sales in China from EUR 425 million in the previous financial year to EUR 1 billion by 2020. As one of the leading household appliance manufacturers, Midea has an extensive sales network, contacts to suppliers and important decision-makers.

Kuka itself should remain operationally independent even in the event of a successful takeover. The unchanged leadership of the company by the current management team is an important prerequisite for Midea's continued success. "We are striving for representation on the Supervisory Board that reflects our stake in the company. We want to work constructively with Kuka's management team and shareholders to drive the future development of the company. In this regard, we are prepared to make concrete commitments regarding employee employment, company brands and intellectual property. In addition, we aim to invest in R&D and software to ensure that the company can maintain and enhance its competitive advantage," said Midea Chairman and CEO, Paul Fang.

Founded in 1968 in Guangdong, China, Midea comprises more than 200 subsidiaries and nine strategic business units. The company's total turnover amounted to more than EUR 18.7 billion in the 2015 financial year (as at 31. 12.). The Group employs around 100,000 people at 21 locations worldwide and operates 260 logistics centers. The company is listed on the Shenzhen Stock Exchange.