JK Tyre & Industries Ltd. is working towards merging with its 2016-acquired subsidiary Cavendish Industries Ltd. (CIL). Following the merger, all the company’s tyre operations in India will be housed within a single listed company, an arrangement expected to result in greater synergies, a simplified structure and less red tape. JK Tyre also views a merger with CIL as a means of “unlocking value” for its shareholders as well as improving investor perceptions.
Well-known brake manufacturer Brembo N.V. has sold its entire stake in Pirelli & C. S.p.A. through an “accelerated bookbuilding offering” (the “Placement”). The proceeds amount to approximately 282.9 million euros, deriving from the sale of Brembo N.V.’s entire stake of no. 55,800,000 ordinary shares of Pirelli & C. S.p.A., at a price of 5.07 euros per share. Brembo’s stake in Pirelli had equated to roughly 5.58 per cent of Pirelli’s issued share capital.
China’s Qingdao Doublestar intends to sell its entire 100 per cent shareholding in Guangrao Jixing Tire Co. Ltd through a public listing. The company stated it is actively seeking potential buyers but clarified that this announcement does not constitute an offer or a transaction.
China’s Silk Road Fund has sold its entire stake in Pirelli through an accelerated placement procedure. According to a statement published by the Borsa Italiana stock exchange this morning, the economic development fund has divested some 90.2 million shares, which represents a 9.02 per cent shareholding in Pirelli. Demand for the shares far exceeded supply, and MTP/Camfin have reportedly purchased shares equal to 2.2 per cent of Pirelli’s capital.
Three sources “close to the matter” have shared with Reuters their expectation that Sinochem Holdings will retain its stake in Pirelli despite Italy’s Golden Power Decree restrictions. One commented that China may view an exit from Pirelli as a “reputational setback” at a time of “tenser relations” with Western countries.
Following the closure of the Bridgestone (Huizhou) Tire Co., Ltd. (BSHZ) truck tyre plant in China late in 2021 and the relocation of its manufacturing to Shenyang, the former plant assets in Huizhou, Guangdong Province remained Bridgestone’s property. The company today agreed to sell all shares in BSHZ to Huizhou Zhongkai Xinye Development.
Scandinavian Enviro Systems has raised SEK 300 million (£23.4 million) via a directed share issue and intends to use 75% of this to acquire shares in the previously announced, Michelin-supported joint venture with Antin Infrastructure Partners and to finance the JV’s first plant. The remaining 25% will finance Enviro’s operations for at least 24 months.
Pirelli reports that the shareholder agreement between Camfin SpA and LongMarch Holding S.à.r.l. first signed on 13 May 2020 and modified on 30 June 2021 has been renewed for a further three-year period. The agreement thus remains in place until 13 May 2026.
On 28 June, China National Tyre & Rubber Co., Ltd (CNRC), a subsidiary of state-owned conglomerate Sinochem Holdings, completed the acquisition of the 38 per cent share in Prometeon Tyre Group (PRG) owned by High Grade (HK) Investment Management Ltd. Once it has concluded “internal decision-making procedures,” CNRC will entrust its stake in PTG to Aeolus Tyre.
Tyrepress has learned from people familiar with the matter that the shareholding of Shandong Yongsheng Rubber Group Co., Ltd. has changed recently. After the equity change, Tian Xiuzhen held 50 per cent and became the group’s major shareholder. Liu Zijun and Liu Huiqin each own 25 per cent of the shares.
In statements published today, Bridgestone Corporation announced the intention to sell its anti-vibration rubber and chemical products solutions businesses. The company expects the respective deals will close by the end of July and end of August 2022.
End-of-life tyre recycling firm Genan has a new majority shareholder after PKA, sole owner of Genan since 2014, agreed to sell 51 per cent of its shares in the company to Maj Invest Equity 5 K/S, a fund overseen by one of Denmark’s leading asset management companies. PKA continues to co-own Genan as minority shareholder.
Michelin is entering into a partnership with Swedish firm Scandinavian Enviro Systems (Enviro) to develop and industrialise on a large scale pyrolysis technology to recycle end of life tyres into raw materials. The two companies signed a shareholding subscription today that will see a subsidiary of the tyre maker, Michelin Ventures SAS, acquire a 20 per cent stake in Enviro.
Braking systems company Brembo S.p.A. has announced that it holds an interest in consumer tyre manufacturer and fellow Formula 1 supplier Pirelli. As of 31 March 2020, Brembo holds a 2.43 per cent stake in Pirelli, both directly and through its parent company Nuova FourB.
Private equity firm Warburg Pincus is investing around £117 million in Apollo Tyres via a subsidiary. On 26 February, the tyre maker’s Board of Directors approved the issue of up to 108 million compulsorily convertible preference shares, each with a face value of Rs 100, to Emerald Sage Investment Ltd. The transaction is subject to shareholder and regulatory approvals.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.