Goodyear Going Shopping For TC Debica Shares

Goodyear Tire & Rubber has announced that its Luxembourg based subsidiary Goodyear S.A. will commence a cash tender offer to acquire any outstanding shares in Polish tyre company TC Debica for 59.52 PLN per share.

The Luxembourg subsidiary filed an announcement of its intention to launch the tender offer with the Polish Financial Supervision Commission and the Warsaw Stock Exchange on September 22, outlining the terms and conditions of the tender offer. In accordance with Polish regulations, the acceptance period for the tender offer will begin on October 12 and conclude at the close of business in Poland on November 10, 2009.

As a contract manufacturer for Goodyear, TC Debica sells approximately 80 per cent of its output to Goodyear or company subsidiaries under various Goodyear brand names. Most of the remainder are sold by TC Debica in Poland under the Debica brand. Goodyear S.A. currently owns 65.99 per cent of TC Debica’s 13.8 million outstanding shares. The company acquired 59.87 per cent of TC Debica’s stock in December 1995 and an additional 6.12 per cent in March 2008.

The share purchase will be funded with Goodyear’s cash and available credit. Goodyear S.A. has retained UniCredit CAIB Poland S.A. to serve as the intermediary for the tender offer.