Caterpillar Inc said on Thursday it will make an offer to purchase China's ERA Mining Machinery Ltd to strengthen its mining business and ramp up investment in the fast-growing country, in a dual-option deal that could be worth up to $885 million.ERA shares were up 19.7 percent at HK$0.79 at 0427 GMT on Friday. The broader market was up 1 percent.Caterpillar, the world's largest heavy machinery manufacturer, will either pay HK$0.88 cash per share, and/or offer a loan note alternative, which will entitle ERA's loan note holders to receive a minimum of HK$0.75 and up to HK$1.15 per loan note upon redemption.The offer values Hong Kong-listed ERA at HK$4.490 billion-$6.885 billion ($577.25 million-$885.15 million), Caterpillar said in a statement.
Caterpillar Inc. (Caterpillar) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Shares of CAT traded higher by 0.61% or $0.56/share to $92.20. In the past year, the shares have traded as low as $67.54 and as high as $116.55. On average, 10967900 shares of CAT exchange hands on a given day and today's volume is recorded at 7323756.
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