Apple's supplier Manz, which is currently trying to raise funds, announced that the company will sell a 29.9% stake to Shanghai Electric.
Manz will issue new shares to Shanghai Electric at a price which is close to the market price and the upper limit is EUR40 per share. Apart from the issuance of new shares, this deal may lead to a full takeover offer.
The German group, which makes machines to produce solar panels, smartphone displays and batteries, and counts Apple as a major customer, announced in December 2015 that the company planned to cut 174 employees, which was about 10% of its total employees. This employee layoff is expected to cut the company's annual expense by EUR7 million, which is about USD7.65 million. Manz said that due to pressure from order delays and cancellations, expense reduction has become an inevitable measure for the company.
Shanghai Electric has agreed to buy all of the new Manz shares not subscribed to by existing major shareholders chief executive officer Dieter Manz and his wife Ulrike Manz, both of whom will not exercise their subscription rights.