Double Coin to Sell Shanghai Michelin Warrior Tire Shares

Double Coin Holdings Ltd. announced on July 17 the intention to sell its 28.5 per cent shares in Shanghai Michelin Warrior Tire Co. Ltd (SMWT); the company says it believes this transaction is in the best interest of SMWT’s shareholders. The share sale will follow the applicable process and rules that apply under Chinese laws and regulations. At the same time a second shareholder, Shanghai Minhang United Development Co., Ltd, will also sell its 1.5 per cent share.

Michelin, which has owned 70 per cent of SMWT since the joint venture’s formation in 2001, has expressed its intention to purchase the shares for sale, a move the French tyre major says is in line with its long-term commitment to the Chinese tyre industry and to its stakeholders. Michelin notes that it will continue to collaborate with Double Coin.

In a press statement, Michelin says that all parties involved consider this transaction to be the best approach to ensure SMWT’s sustainable growth.