Is Michelin Angling for a Majority Stake in Gajah Tunggal?
Indonesian news sources are speculating that Michelin is positioning itself to take a majority stake in PT Gajah Tunggal Tbk, the Indonesian tyre manufacturer wing of Giti Tire. Michelin currently holds 10 per cent shares in the company and in the next year is expected to receive around 5 million through an off-take agreement with the company.
Indonesian website VIVAnews quoted an unnamed source as saying Michelin will buy a 44 per cent stake, making its total shareholding a majority 54 per cent. Gajah Tunggal director Catharina Widjaja reportedly said she had not heard that Michelin would be the majority shareholder of the company. When asked the same question Herve Richert, Giti Tire director sales and marketing (international), gave Tyres & Accessories a similar reply: “These are media news rumours, that we are not aware of and have no basis.”