Troika Dialog, the oldest investment bank in Russia, has rated Amtel-Vredestein stock as “hold,” with a fair value of $11.06. According to the bank, the company “appears to have the means to deliver significant income growth in 2006.” However, Troika analysts also state their concern that “corporate governance practices, a tendency to grow debt and sudden swings in capital expenditure are holding back its valuation.”
Amtel-Vredestein NV (AV), a pan-European tyre manufacturer with operating facilities in Russia and the Netherlands, today announced that its chief financial officer, Victor Nekrasov, will leave the company to join a leading international investment bank.
(Akron/Tire Review) Amerityre Corp said it has retained Los Angeles-based CCG Investor Relations and Strategic Communications to “provide counseling in a broad range of corporate communications directed at investors and the media.”
Bulgarian company Ecoprocess (Dobrich) has completed the construction of a tyre recycling factory. The plant uses a technique called vacuum pyrolysis to incinerate tyres and break them down into carbon, pyrolysis oil and gas.
In 2005 Continental’s capital expenditure increased by 20 per cent and should increase by a further 7 per cent to 910 million euros (6.3 per cent of sales). Over the last three years (2002 – 2004) Continental’s capital expenditure (capex) reached 5.5 per cent of sales, approximately 650 million euros per annum, according to Deutsche Bank analysts.
(Akron/Tire Review) Canadian Tire Corp has reached agreement for the sale and leaseback of two of its distribution centres, located in Brampton, Ontario and Calgary, Alberta, to H&R Real Estate Investment Trust. The $229 million deal involves Canadian Tire leasing the facilities back.
Bernie Ecclestone and German bank BayernLB have sold their controlling stake in Formula One to CVC Capital Partners for an undisclosed sum. The sale gives the investment company 75 per cent control of F1. However Ecclestone will hold onto the chief executive post at Formula One Group as well as retaining a stake in the business.
Russian-Dutch tyre maker Amtel-Vredestein has admitted to using tax optimisation schemes up to 2002, according to Russian newspaper Vedomosti. The report refers to a period before Amtel bought Vredestein and comes after Amtel-Vredestein set an indicative range of $13 to $16 per Global Depositary Receipt in its London IPO, which is expected to raise around $300 million and value the company at $1.2 billion.
(Akron/Tire Review) Activist hedge fund Jana Partners has taken a strong stance against the proposed “merger” between Titan International and One Equity Partners. Calling it a move to take Titan private, Jana Partners said the $18 per share offer made by One Equity Partners was “well below the true value of the company.”
Michelin has started an Economical Development Fund with the aim of helping small and medium sizes enterprises (SMEs) and creating more jobs. The company itself is providing 250 new places in Nyíregyháza through a 60 million euro investment, said regional director Joel Pouget. The factory in Nyíregyháza, which produces tractor tyres for the European market, will expand to include car tyre production from September. The company, as part of its Michelin Development Project, will sponsor SMEs within a 50-kilometer distance from its sites. They will also provide support in terms of loans of up to 1 million euros a year, the Budapest Business Journal reported.
Automotive parts manufacturer Remy Automotive UK has relocated its UK Head Office to a new 61,080 sq. ft. complex at Burntwood in Warwickshire.
(Akron/Tire Review) News reports indicate that Slovakia is still negotiating with South Korean manufacturer Hankook Tire Co for a 500 million euro plant near Levice. Acting Slovakia Economy Ministry spokesman Peter Papanek told newswire TASR that negotiations were on-going. “The Hankook investment is still very important for Slovakia. The Slovak Investment and Trade Development Agency (SARIO) is still holding talks on this investment,” Papanek said in published reports.
The country is now offering an incentive package that is 70 per cent lower than its original offering of some 110 million euros. Slovakia’s cabinet rejected an investment plan with Hankook in early July. That plan allowed for state investment for infrastructure improvements worth 21 per cent of Hankook’s planned investment. Hankook said that it would not accept the lowering of investment stimuli from 21 per cent to 19 per cent, and restarted talks with other Eastern European nations.
The fall of Slovakian economic minister Pavol Rusko has cast doubt on Hankook’s plan to invest 500 million euros into a new tyre factory. The so-called “enfant terrible” of the government in Bratislava always supported Hankook’s strategy and even offered public subsidies of up to 20 per cent of the overall investment, despite the criticism he received over this commitment.
Just one day before Rusko was sacked by the Slovakian president, the prime minister Mikuláš Dzurinda advised his minister to resign amongst allegations of “non-transparent credit transactions”, said a German media report. According to Slovakian analysts, it is likely that the policy of decreasing these incentives for foreign direct investments will continue under a new economic minister. Therefore, the Hankook deal does not appear to have a future. A decision was said to be due by 31 August.
UK wholesaler, Viking International, has invested more than £500,000 in distribution by replacing 34 of its vehicles with new Mercedes Sprinters vans for its nine warehouse distribution centres.
This investment further strengthens its fleet that already consists of 100 vehicles. Mike Curry, managing director for Viking International, explained: “We need to guarantee at all times that our customers get the best possible service and that means we have to continually invest in our company.
“These vans are our face to the customer and they cover considerable distances each year. It is essential that they remain in top condition to ensure that we can continue to maintain our reputation for service delivery.”
96.98 per cent of the shares in the Azershin tyre factory in Azerbaijan are for sale. Commissioned in 1959, the Azershin plant is located in Baku, Azerbaijan and covers an area of 17.9 hectares. The plant produces 1.5 million tyres per year. The enterprise, with the charter capital of 8.9 billion manats ($1.87 million), employs 69 people and has 894,314 shares with a value of 10,000 manats each. Azershin has arrears amounting to 26.5 billion manats ($5.6 million).
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