Magni buys back Dingli’s 20% share
12 December 2023
Magni Telescopic Handlers has bought back the 20% stake in its business acquired by Chinese OEM Dingli in 2016. Magni paid €61.4 million to return to 100% ownership, having sold the stake to Dingli for €14.4 million in early 2016.
The transaction was announced by Dingli several weeks ago and confirmed last week by Riccardo Magni in an interview with Rental Briefing, the daily newsletter published by International Rental News.
Under the 2016 deal, Magni designed a range of products for Dingli and also sold Dingli-produced machines in Europe. The two companies will continue their sales and technical cooperation under the new ownership structure.
Magni, who founded the company in 2013, told Rental Briefing; “We still have a very good relationship with Dingli. It is a family company, like ours. I asked [Dingli’s owner] Mr Xu to sell me back my 20%. It took one year to discuss everything and he made a very good deal, because now I’m paying €61 million for what he paid €15 million.
“We have had a very good collaboration. In Europe, we are selling a very good volume. We are over €100 million in sales of the Dingli machine.”
Magni added that the EU anti-dumping investigation into Chinese access equipment exports to Europe had played a part in the decision.
Dingli, in its Chinese language announcement, said; “After the completion of this equity transfer, the company’s retained earnings will increase, benefiting all shareholders and the company.
“Following the transaction, Zhejiang Dingli and Magni will continue to maintain a good cooperative relationship in product sales, market development, technical cooperation, and other aspects.”
Read the full interview with Riccardo Magni later this week at www.internationalrentalnews.com and in Rental Briefing.