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.
Following the news that it will take control of Kumho as the largest shareholder, Qingdao Doublestar has released details of how it is working to indirectly hold 45 per cent of Kumho’s shares by issuing shares and paying cash in order to obtain strategic assets. After the complex transaction is completed, Qingdao Doublestar will control Kumho. Prior to this transaction, 45 per cent of Kumho was controlled by the wider Doublestar group rather than the tyre manufacturer Qingdao Doublestar itself.
At the end of March, tyre manufacturer Qingdao Doublestar suspended trading on the stock exchange and announced that it was preparing to officially take control of Kumho and resolve competition in the industry. Doublestar said it will disclose further information before April 11.
Halfords Group’s share price fell by around a quarter in response to an unexpected profit warning notice on 28 February, which suggested Halfords would make substantially less profit than the firm forecast roughly a month earlier. At least part of the reason for the profit warning was softening demand in the consumer tyre sector. Halfords stock recovered slightly in early trading on the morning of 29 February, however the five-day chart shows that the company’s share price remains around a quarter down.
Following on from the execution of the Italian government’s golden power directive, which removed Sinochem’s power to appoint a chief executive, Pirelli’s major investors have struck an investment agreement that effectively gives increased control to Pirelli’s Italian shareholders as well as to executive Marco Tronchetti-Provera’s eponymous company.
MBK Partners, a private equity firm in Asia, has increased its offer to buy a controlling stake in Hankook & Company, the parent company of Hankook Tire & Technology Ltd. On 17 December, MBK Partners raised its offer to acquire a minimum of 20.35 per cent and a maximum of 27.32 per cent of Hankook & Company by 20 per cent. The revised price now stands at 24,000 won ($18.40) per share, up from the initial offer of 20,000 won. The price is 51.4 per cent higher than the firm’s closing price of 15,850 won on Friday.
TMD Friction and Hella have agreed to transfer the 50 per cent share currently held by TMD Friction in the brake joint venture Hella Pagid to Hella. Hella will thus become the sole shareholder of Hella Pagid. Founded in 2013, Hella Pagid, a joint venture between automotive supplier Hella and brake friction manufacturer TMD Friction, sells brake components and accessories on the global automotive aftermarket. The purchase price has not been disclosed.
Van rental company Redde Northgate has reportedly presented a £1.4 billion merger to Halfords. According to multiple reports, the two companies have held “detailed talks”. Redde Northgate owns 130,000 vans and corporate cars in the UK and Spain.
Tyre manufacturer Hubei Aulice officially listed on the National Equities Exchange and Quotations (NEEQ) and can publicly transfer its shares.
Approximately three-quarters of the funds that Qingdao Sentury Tire Co. Ltd. needs to set up a factory in Spain have been secured through a share issue. On 22 August, the tyre maker informed the Shenzhen Stock Exchange that it had issued 94,307,847 shares to 20 parties at a price of RMB 26.69 (£2.93, US$3.68) per share, raising approximately RMB 2.8 billion (£307.1 million, $386.4 million).
The Goodyear Tire & Rubber Company’s fell share price fell 20 per cent when markets opened on 3 August 2023. The sharp fall to around $12.30 represents the lowest point since investor Elliott called for largescale strategic and board composition changes on 11 May 2023. At the time of going to press, Goodyear’s share price was showing signs of recovery and trading at around $13.15.
The open letter that Elliott Investment Management L.P. sent to The Goodyear Tire & Rubber Company on 11 May 2023 was met with a promise to review the shareholder’s recommendations, which included the initiation of an operational review and the appointment of “five new highly qualified independent directors.” While Goodyear hasn’t met this wish list in its entirety, today the company announced three additions to its Board of Directors in connection with a cooperation agreement with Elliott.
Elliott Investment Management L.P.’s 11 May open letter to Goodyear’s board of directors sent shockwaves through the company and the markets. Essentially, Elliott’s expounded on its “deep conviction in the opportunity for Goodyear to improve after more than a decade of underperformance”, which was widely interpreted as laying down the gauntlet to Goodyear’s board and most senior executives. With Elliott calling pistols at dawn in the mid-west, the question is: is it time to buckle up and circle the wagons in Akron or are vultures circling over Goodyear? Here, Tyres & Accessories presents an in-depth analysis of Elliott’s arguments for enormous change, critically evaluating the problematic areas Elliott identifies along the way. In order to support our analysis, we spoke to senior executives close to Goodyear, those with first-hand management experience in Akron, financial analysts and third-party market researchers.
On 12 June, Haian Rubber Group (Haian Group)’s application for an initial public offering (IPO) on Shenzhen Stock Exchange was accepted, according to official filings.
In its letter to the Goodyear Board, Elliott Investment Management L.P. requests engagement on Board Enhancement, monetising Goodyear’s retail platform, and forming an Operational Review Committee. At the receiving end of Elliott’s open letter are Goodyear CEO Rich Kramer and the current board of directors. The declaration that “we believe Elliott’s strength is in catalysing change” can be read as a promise to dissatisfied Goodyear shareholders and a threat to the leadership team.
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