Tiger Wheels Realign Investments

South African Tiger Wheels is planning to realign its investments in wheel manufacturing, which might lead ultimately to an overseas listing for the company. This was announced by CO, Eddie Keizan, as he unveiled an impressive set of financial results for the six months to December. Keizan explained that Tiger Wheels had a German private investor as a partner in its ATS wheel manufacturing subsidiary but said it had 100% ownership of its SA factory at Babelegi, near Pretoria, through a wholly owned subsidiary, TSW Manufacturing.

Discussions are under way which could involve Tiger Wheels buying out its German partner in ATS, or offering it a stake in the SA plant. Another option might involve the SA factory being sold to ATS. Keizan, noted that much of group turnover was outside SA, and if the restructuring were to produce undesired results, “moving offshore would be a possibility”.

Tiger Wheels enjoyed an 18% boost in revenue in the six months to December with a rise from R1,2bn to R1,4bn. Attributable earnings soared 65% to R49,4m, while headline earnings a share were up 54% from 51,2c to 79c. He stressed the importance to the group of globalisation, and explained that Tiger Wheels’ growth would roll along in line with demand from the automotive sector.

“Demand is growing and we hope to get our growth as part of that,” he said. “Our next big step, but not for the next two years, will be in Asia.”.