Conti acquisition of Modi Tyres completed

On July 15, India’s Modi Rubber Ltd notified the Bombay Stock Exchange that the sale of its Modi Tyres subsidiary to the Continental Group has been completed. It informed the BSE that the entire shareholding in Modi Tyres Company Limited, a total of 56,046,680 equity shares, changed hands for a share purchase consideration of Rs 1,176,189,838 (£16.1 million) and a non compete fee, net of withholding tax, of Rs 172,295,100 (£2.4 million). Modi Tyres Company Limited is thus now a wholly owned subsidiary of the Continental Group.

Following the sale, shares in Modi Rubber rose five per cent on the BSE to their highest permissible daily limit during early morning trade on July 18, reaching a peak of Rs 63.20 (£0.86).