Negotiations over Pearl River Tyre sale terminated

Hong Kong-based, Bermuda-registered company Pearl River Tyre (Holdings) Limited, who is 70 per cent shareholder in the joint venture company Guangzhou Pearl River Rubber Tyre Ltd, has been told by its controlling shareholders that negotiations with a potential buyer have been terminated.

In July, Pearl River said majority shareholders Pacific Union and Kuala Lumpur Kepong declared they were in negotiations with an independent investor that might result in Peal River’s sale. However in a statement dated 17 November, Pearl River announced “the board has been informed by the controlling shareholders that their negotiation with the potential investor regarding the possible disposal has terminated…the controlling shareholders have further informed the board that they are not in discussion or negotiation with any other person regarding any disposal of their shares.”

As mentioned above, Pearl River Tyre is majority shareholder in the Guangzhou Pearl River Rubber Tyre joint venture. This Guangdong Province-based operation has produced cross-ply commercial vehicle tyres since 1970 and today reports an annual output of some two million pieces, which are marketed under a number of brand names including Pearl River, Sunstone and Regal. In its 2010 annual report, the joint venture company also stated it is “moving into radial tyre production while maintaining a reasonable scale of bias ply commercial tyres.” Production of light truck radials has now “come on stream” and Guangzhou Pearl River management are planning to introduce other radial ranges, including SUV, van and pickup lines.