Bidvest Believed to Behind TiAuto Buyout Announcement

Bidvest, 20 per cent shareholders in Tiger Automotive Ltd (TiAuto), who in turn own a 51 per cent share in Yokohama High Performance Tyres in the UK, is believed to have shown interest in acquiring all of the company’s retail and wholesale aftermarket wheel and tyre business. In mid-October TiAuto’s board announced: “Shareholders of Tiger Automotive are advised that the board has received a proposal which may result in an offer to acquire the entire issued share capital of the company.”

According to reports the proposal looks to have originated with Bidvest, a move that would be in line with comments made by Bidvest CEO Brian Joffe, who said when the company bought its share in Tiwheel that the retail operations were linked to Bidvest’s own vehicle retailing interests, but no effort could be made to work with both operations jointly unless it was able to acquire TiAuto outright. Bidvest acquired a 17 per cent stake in Tiwheel for £17.3 million in 2005 as part of a strategy to increase its participation in the automotive industry after-sales market. It increased its holding to 20 per cent later that year by exercising an option to purchase a further 1.8 million shares for £3.2 million.

TiAuto shares gained more than 10 per cent value on October 18 after the announcement of the buyout proposal.