The management and supervisory board of KHD Humboldt Wedag International have recommended company shareholders accept a takeover bid from AVIC International at the offer price of EUR6.45/share.

The offer price corresponds to a premium of 34.9 per cent on the average closing price of the KHD share over the three-month period prior to announcement of the offer on October 10, 2013.

KMPG, who was engaged by KHD’s management board, as well as Network Corporate Finance, a consulting company commissioned by the supervisory board, each concluded that KHD shareholders are being offered appropriate compensation for the tender of their shares.

In a joint statement, the management and supervisory Board said they welcome AVIC’s aim to continue its support of KHD’s current growth strategy and to maintain the commercial identity of the KHD Group. “The intended identification of potential for growth as well as cost savings and improvement, in addition to support from external acquisitions, can contribute to strengthening the competitive position of the KHD Group,” the statement said.

AVIC already indirectly owns a total of approximately 20 per cent of the shares in KHD.