Eaton announces tender offer for Chinese electrical company Senyuan International Holdings


CLEVELAND ... Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) announced today that it will make a voluntary general offer for the shares of Senyuan International Holdings Limited (HKSE:3333), a Hong Kong Stock Exchange listed company. The offer will be made through financial adviser DBS Asia Capital Limited.

Eaton's offer price is HK$1.49 per share. However, the offer price will increase to HK$1.62 per share -- representing an aggregate price of US$63.6 million for all outstanding shares -- if acceptances are received representing 90 percent or more of the outstanding Senyuan shares. These offer prices represent premiums of 10.4 percent and 20 percent over the average closing price of the last 30 trading days. They also represent premiums of 26.3 percent and 37.3 percent over the issue price per Senyuan share of HK$1.18 at its initial public offering on July 11, 2005.

Eaton has received irrevocable commitments to accept the offer from holders of 75 percent of the outstanding Senyuan shares and therefore the condition as to shareholder acceptances will be satisfied shortly after the offer is launched. The offer remains subject to other customary conditions.

Senyuan's wholly owned subsidiary, Changzhou Senyuan Switch Co., Ltd., is a well-established manufacturer of vacuum circuit breakers and other electrical switchgear components in the People's Republic of China. The company had 2005 sales of RMB 374 million or US $47 million. It is based in Changzhou, Jiangsu Province, and has 530 employees.

"The acquisition of Senyuan will strengthen our medium-voltage electrical business by providing us with local channel access to the fast-growing China market and to an important manufacturing base for medium-voltage electrical products," said Randy W. Carson, Eaton senior vice president and president - Electrical Group. "Senyuan is a widely recognized and well-respected name in the Chinese medium voltage market and we look forward to combining the capabilities of both organizations."

Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 60,000 employees and sells products to customers in more than 125 countries.


Contact Information


Gary Klasen, director, Media Relations

Colman Chiu, DBS Asia Capital
(011) +(852) 2218 8656