TIANJIN, Jan. 28 (Xinhua) -- China's Masterwork Group has announced it intends to obtain an 8.46 percent stake of Heidelberger Druckmaschinen AG (Heidelberg) by way of cash subscription.
The proposed investment, subject to approval by Heidelberg's supervisory board, will make a wholly-owned subsidiary of Masterwork the largest shareholder of the German precision mechanical engineering company, according to Masterwork.
With the issue price of the new shares set to be 2.68 Euros (3.06 U.S. dollars), the total investment will be worth about 68.99 million Euros (about 78 million U.S. dollars).
"We believe that the strategic investment will enhance our partnership and make contributions to the development of high-end equipment manufacturing in China as well as the world," said Li Li, president of Masterwork.
The two sides have also signed a strategic cooperation agreement, aiming to accelerate their digital push in the packaging printing industry, according to Masterwork.
"We are delighted that in Masterwork we are obtaining another long-term investor that firmly believes in the company's innovative prowess, strategy, and potential for the future," Heidelberg CEO Rainer Hundsdorfer said.
Based in the Chinese city of Tianjin, Masterwork is China's largest manufacturer of die-cutters and hot-foil embossing machines.
Established in 1850, Heidelberg is a world-leading manufacturer of offset printing equipment.
A single purchase
