Quite a interesting bit in todays Financial times UK. Kion are to raise 500 Million Euro by IPO Weichai Power to increase share holding to 30%, KKR and Goldman sacks to sell part of there share holding and the value would be 5 billion euro. This all looks very well. But Weichai only paid 467 million euro for 25% meaning the company would be worth only 1.868 billion based on this.

So why would anybody ant to pay 500 mill for around a 10% stake if the articul is correct and weicha would not be a majority stake holder.

Looks like it will be a quicker way to lose money than either buying a premier league football team or facebook shares.


The one thing is for certain the city people don't understand the business. if they are willing to pay 500 mill for a stake more than 50% less than the Chinese less than 12 month ago then good on KION. If you don't mind losing money then this is a great investment