After owners of troubled Kumho Asiana Group rejected a demand by creditors that they offer their stockholdings and assets as collateral for fresh loans, creditors have said all restructuring steps would be put on hold, with some floating the idea that key parts of the group would be put under court receivership, reported the Korea Times.
North Carolina, US based wholesaler American Tire Distributors Holdings has lodged registration documents with the US Securities and Exchange Commission to initiate proceedings for a proposed initial public offering of its common stock. The company, who claims to be the largest replacement tyre distributor in the United States, intends to list its common stock on the New York Stock Exchange under the symbol "ATD", however it has not yet determined the number of shares to be offered and the price range for the offering.
According to an announcement made by Shanghai United Assets and Equity Exchange’s, Michelin is the transferee of the 30 per cent of the shares held in Shanghai Michelin Warrior Tire Co. Ltd. (SMWT) at the price of RMB 170,180,000 (₤15.6 million). A statement released by Michelin notes that “all of the parties agree that the transaction is in their best interests and is beneficial to the sustainable growth of SMWT and Warrior Brand”.
Continental AG reports that its capital increase and the 31 million new shares it released have been met with “great interest” by free float shareholders. The company announced on January 26 that free float shareholders purchased 99.4 per cent of the 3,408,130 new shares allotted to them. The remaining new shares for, which subscription rights were not exercised and which were placed already with investors on January 6 and 12 under a reservation of rights being exercised by a bank syndicate headed by Deutsche Bank AG, Goldman Sachs International and J.P. Morgan Securities Ltd., will now be issued. The final delivery and settlement will be executed on January 28, 2010. With the capital increase, Continental AG achieved gross proceeds of some €1.114 billion.
Pirelli & C. SpA, parent company of Pirelli Tyre, reports that its “Sindacato di Blocco Azioni Pirelli & C. SpA” shareholders’ agreement has been renewed for approximately three years. No changes to members or shares have been conferred. The agreement’s new expiry date is April 15, 2013. All the members in the shareholders’ agreement, Pirelli adds, have expressed the will to renew the agreement within the deadline contractually determined for withdrawal, 15 January 2010.
The Korea Times has reported (on 19 January, 2010) that creditor-led restructuring of the cash-strapped Kumho Asiana Group has started off badly. Reports say that disputes are growing between the group, creditors and other stakeholders over how to resolve major issues surrounding debts from Kumho’s takeover of Daewoo Engineering & Construction in 2006. Separately, the debt workout programs of Kumho Industrial and Kumho Tire have hit rocky ground as founding family members and creditors are in disagreement over how to restructure the group. Creditors insist Kumho Petrochemical, the group's de facto holding firm, and Kumho Asiana Airlines should be subject to the debt repayment plan.
Dunlop India has resumed trading on the Bombay Stock Exchange following an absence of eight years. The company’s stock was relisted at Rs 50 per share, a figure that proved to be both its high and low on January 12, its first day back.
Continental reports that the following news is not intended for direct or indirect release, publication or distribution into the USA, Canada, Australia or Japan, so T&A invites subscribers outside of these regions to read further.
Morgan Stanley analysts have described Conti's recent share issue as a “very significant” move forward in an investor's note dated 8 January. “We think Conti's latest recapitalization effort is positive for four main reasons: it enables the forward start on the 2010 debt maturities… the 35 euros price was a smaller discount than… expected; [it] increases free float to 25 per cent from 11 per cent and helps stabilize the company's image in the marketplace which reduces the risk to the underlying business.” While they conceded that this final point is “intangible,” the analysts report that the share offer addresses a key concern “that Conti's winning culture and ability to retain existing contracts, attract new business and new human talent was threatened by an unstable financial future.” In this regard, we think Conti is turning the corner.
Continental AG shares rose over 10 per cent yesterday, following the start of a widely expected 1.1 billion euro rights issue. About three quarters of the new shares are said to have been placed with investors already. The offer also has the dual effect of diluting Schaeffler’s stake in the company to just over 75 per cent. Strategically, this is something Schaeffler (which previously indirectly controlled 90 per cent of Conti) shares is likely to be happy with as it is still firmly in control of the company’s stock.
The issuance of 31 million new Continental AG shares, valued at 35 euros apiece, is anticipated to increase the company’s capital by approximately 18 per cent. This rights issue, approved by Conti’s Supervisory Board on the evening of January 6, has been described by Continental as “another significant milestone” in its plan to improve its capital and financing structure, and the capital raised along with the 2.5 billion euro loan announced last month will be used to repay the company’s 3.5 billion euro Tranche B debt, which is due in August.
As many as a fifth of Kumho Asiana Group executives may face the axe as part of a restructuring arrangement, the Wall Street Journal reported on January 5, The paper added that remaining management could also see their salaries shrink by 20 per cent under the terms of such a deal. The company has already indicated its intention to raise more than KRW 1.3 trillion (£695 million) through the restructuring of its assets, including the Kumho Tire and Kumho Industrial business units. Following the publication of this news the value of Kumho Tire shares plunged 15 per cent, the maximum decrease permitted in a single day.
Titan International has reported its intention to offer US$75 million aggregate principal amount of its Convertible Senior Subordinated Notes, due 2017, in a private offering. The company says it intends to use the proceeds from the offering for “general corporate purposes”, including financing potential future acquisitions and repayment of existing debt obligations.
Following the closure of a share swap agreement between Slovak Republic based CBp Carbon Industries, Inc and US company Carbon Green Inc. (formerly known as Neema Inc.), both companies will effectively hold an ownership stake in CBp Carbon subsidiary Greenwood Commerce Ltd, who now holds the worldwide exclusive ownership rights to a proprietary technology that allegedly enables the by-products of tyre pyrolysis to be converted into recovered steel, a diesel equivalent oil that can be employed to generate green electricity in many countries, a nano-particle compound said to be a tyre industry-tested and accepted competitive substitute for commercial carbon black, and a clean-burning gas Greenwood will use to power its processing plants.
Dunlop India intends to relist its shares on the Bombay Stock Exchange in the next 10-15 days, reported Reuters on December 4, quoting Ruia Group chairman Pawan Kumar Ruia. "In the next 10-15 days of time the permission will be given to deal or trade in the shares in which trading was suspended in 2002," said Ruia, adding that 45 million shares held by the company in 2002 will be allowed to trade. According to Ruia, the company anticipates an Rs 7 to 8 billion (£91 million to £104 million) turnover in the 2011 financial year.
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