Privatisation of Bridgestone Australia Approved

Following a AUD$50 million (£20.5 million) deal approved by shareholders on March 20, Bridgestone Australia is set to become a private company. At present minority shareholders hold about 14.5 million Bridgestone Australia shares, while Bridgestone Corporation possesses more than 22 million shares, or 60.3 per cent. Bridgestone Corporation intends to offer minority shareholders AUD$3.40 (£1.40) a share, comprising of a return of capital of 50 cents and a fully franked dividend of $2.90. Following the buyout Bridgestone will be delisted from the Australian Stock Exchange on May 30, 2007.

Bridgestone Australia chairman and chief executive Mac Ohashi said privatisation would give Bridgestone Australia more flexibility to operate in an increasingly competitive market. “This is a critical step for the future growth of the business,” he stated.

News of the privatisation decision came the same day as Bridgestone Australia stood down 200 employees at Bridgestone’s plant in Adelaide as a consequence of wages-related industrial action. According to Mac Ohashi, the company had no choice other than to stand down the workers. “We tried to keep the factory going but today unfortunately we had a couple of maintenance unions taking strike action.”