China's Midea Group has raised a proposal to Kuka shareholders to acquire additional shares of this German industrial robot manufacturer for EUR115 per share, which is about USD130 per share.
Midea is seeking upgrades of its production facilities and to reduce dependence on human labor.
The acquisition proposal is subject to certain conditions and one of them is that it needs to be accepted by Kuka shareholders who own at least 30% of the outstanding shares. If Midea's stake in Kuka reaches 30%, the Chinese home appliances maker would become the largest shareholder of the German company.
In August 2015, Midea acquired a 5.4% stake in Kuka and in March 2016, the Chinese company increased its stake to 10.2%, becoming the second largest shareholder of Kuka.
Founded in 1898, Kuka is a leading company in industrial production process automation. In 2015, the company realized operating revenue of EUR3 billion, of which over half was from America and China. By enhancing its cooperation with Midea, Kuka will be able to increase its operating revenue in the Chinese market, which is a key point for the growth strategy of the company.