In the afternoon of 9 May 2011, the signing ceremony of GiantKONE Share Transfer Contract was held in GiantKONE headquarter office in Nanxun Town, Zhejiang Province. Mr. John Qian, Board Chairman of Zhejiang Giant Holding Co., Ltd and GiantKone, and Mr. Matti Alahuhta, CEO of Kone Incorporation, attended the ceremony. Over 80 distinguished guests, including Mrs. Zhou Lifen, CFO of Giant Holding, Mr. Gao Yu, Assistant to General Manager of Giant Holding, General Manager, department heads and shareholders representatives of Giant Holding, Mr. Klaus Cawén, M&A, Strategic Alliance and General Counsel of Kone Corporation, Mr. Pekka Kemppainen, EVP of Maintenance of Kone Corporation, Mr. Veeger Noud, EVP of Kone Asia Pacific, Mr. William B. Johnson, General Manager of Kone China, middle-senior management of GiantKONE and employees representatives from all departments and workshop, witnessed this historical moment.
The Share Transfer Contract concerned about 40% of GiantKONE’s shares acquisition by Kone Corporation. After this transaction, Kone’s share with GiantKONE would rise from 40% to 80% and became major shareholder thereof, with 20% held by Giant Holding. GiantKONE would continue to be in operation independently. The effectiveness of the Contract awaited ratification by relative PRC authority and it was estimated the transaction would be closed in the 3rd season of 2011.
GiantKONE was established in 2005 and with 6 years’ development, the total number of employees increased from 463 to over 1800 and branch offices from 11 to 41. The annual increase in purchase orders quantity, PO values and sales income were nearly 50% each year and the company had become one of the major suppliers for elevators, escalators and services in China market.
Both parties believed it was a win-win for both parties in respect of share transfer. Mr. John Qian opined the China elevator market was full of opportunities but also with chanlleges. GiantKONE had to be more competitive to have a bigger step forward. It should be an effective way for Kone to increase its investment in GiantKONE and this is the main reason why Giant Holding transferred its 40% shares to Kone. Mr. Matti Alahuhta said from the cooperation between Giant Holding and Kone since the beginning of 2005 was successful. In the past few years, GiantKONE was one of the fastest growing elevator and escalator companies and it had made both parties proud of the achievements. China market was essential and with Kone becoming the controlling shareholder of GiantkONE, it would further consolidate Kone’s position in China market as elevator and escalator supplier.
