The non-exclusive cross-distribution arrangements between the companies remain valid. Konecranes will continue to sell Kito manual products (chain hoists and lever hoists) using the Konecranes brands, whereas Kito will continue to sell wire rope hoists made by Konecranes under its own brands.
The dissolution of the strategic alliance will allow Kito to participate in the bidding process for STAHL CraneSystems that Konecranes has committed to divest in relation to its pending acquisition of Terex’s MHPS business.
Kito has on September 26, 2016, announced that it will conduct a share repurchase of 5,950,000 shares on September 27, 2016. Konecranes has notified Kito that, due to the dissolution of the alliance, it will tender all its 5,950,000 Kito shares to be repurchased by Kito.
Kito has been consolidated as an associated company in Konecranes’ financial reporting.