Ashurst advised the founding shareholders of Joyou AG, Mr Jianshe Cai and Mr Jilin Cai, on the conclusion of a new shareholders' agreement with the Grohe Group. The aim of the agreement is to build up a stronger cooperation of both companies in order to establish a global market-leading position in the sanitary industry as well as to operate worldwide under the two brands, Grohe and Joyou.

In the course of this transaction Messrs. Cai will exchange their direct and indirect holdings in Joyou AG amounting to approximately 36.5 percent (approximately 7.9 percent to be held directly and approximately 28.6 percent to be held indirectly via Joyou Grohe Holding AG) for a significant minority stake in the Grohe Group.  In return, the Grohe Group will increase its total shareholdings in Joyou AG to about 72.3 per cent.  The free float of 27.7 per cent. will not be influenced by the intended transaction.

The Ashurst team comprised partner Matthias von Oppen, senior associate Peter Holst, counsel Dr Gerrit Clasen and Chinese lawyer Jieyi Xiang (all corporate, Frankfurt).

The Joyou Group designs, produces and sells water taps and other sanitary products.  The group sells its products in China under its brand name and is supplier for international brands and wholesalers in Europe and in the United States. Joyou AG is listed in the Prime Standard of the Frankfurt Stock Exchange. In spring 2011, the German manufacturer of sanitary taps, Grohe, acquired the majority of shares in Joyou.

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