Trading of Tiwheel Shares Suspended

The board of directors at Tiger Wheels Limited has issued advice stating it requested the South African stock exchange JSE Ltd suspend trading Tiwheel shares until further announcement. This suspension took effect as of July 11.

“Shareholders are referred to the cautionary announcement published on May 30, 2007, and are advised that the board of directors of Tiwheel has requested the JSE Limited to suspend trade in Tiwheel’s shares until a further announcement can be made,” the company said in a statement.

Shares in the company have fallen more than 40 per cent since the end of May this year, and on May 30 the company gave notice that the performance of its 74 per cent held global wheel manufacturing business, ATS GmbH, had failed to meet the expectations of the revised performance forecast made to its German financing syndicate in February. It further stated that the syndicate regarded this as a further breach of bank covenants.

Recently is has also been rumoured that South Africa’s Bidvest Group, who acquired a 20 per cent share in Tiwheel in 2005, were looking at increasing their stake in the company.