Nokian Tyres’ former board face insider trading charges
Nokian TyresNokian Tyres 2015-2016 board members are facing insider trading charges and the company faces a fine of up to 850,000 euros. At least that’s what the public prosecutor in Finland is demanding.
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Michelin/Enviro agreement expected in 4Q 2020
Scandinavian Enviro Systems (publ) and Michelin expect the final agreement regarding their strategic partnership will be reached during the fourth quarter 2020 rather than at the end of October, which Enviro previously communicated. The coronavirus pandemic is cited as the reason for the delay in negotiations.
Georg Brunstam appointed president and CEO of Hexpol
Hexpol AB (publ) has appointed Georg Brunstam as president and CEO of Hexpol AB (publ) effective 20 November 2020. Georg Brunstam is currently chairman of the Board for Hexpol AB (publ) and had previously been President and CEO for Hexpol AB (publ) 2007-2017.
Michelin accused of Indonesia natural rubber deforestation “cover-up”
Mighty EarthCampaign group Mighty Earth has published a report alleging that Michelin “covered up industrial-scale deforestation of over 2,500 hectares of rainforest in the run-up to the launch of its flagship ‘eco-friendly’ sustainable natural rubber joint venture project in Sumatra, Indonesia”. The project is currently seeking an additional $120 million in investment from green financiers. Michelin’s joint-venture Indonesia natural rubber project Royal Lestari Utama (RLU) robustly denied the allegations.
Yokohama’s Prometeon bid: Delayed by Covid, but nearing completion
Yokohama’s Prometeon bid: Delayed by Covid, but nearing completion
Today Yokohama announced that it is consolidating its OTR tyre businesses into Yokohama Off-Highway Tires, which could be read as a prelude to the announcement Yokohama’s bid for the Prometeon tyre business. Roughly a year after the story broke, Yokohama’s bid for Prometeon isn’t the best kept secret in the tyre industry. Tyres & Accessories first heard talk of Yokohama’s bid for the ex-Pirelli industrial and commercial vehicle tyre business back in July 2019. The news was reported world-wide after we broke the story in September 2019, followed days later by third-party confirmation from the Chinese side of the deal. At that time, the deal was set to go public by the end of 2019. A few months later at the start of 2020, the timeframe switched to an end-of-first-quarter 2020 deadline. Then the coronavirus pandemic happened. And in the months that have followed things have gone quiet. So, where is Yokohama’s bid for Prometeon up to? The latest news is that deal is still on-track, but that there have been a few changes along the way. Here, Tyres & Accessories brings an update on the status of the acquisition and offers a different view on the deal by looking at it from a South American perspective.
Pirelli shareholders amend agreement, some parties end co-investment accord
Pirelli’s largest shareholders have amended their ownership agreement and – at the same time – certain parties have ended their co-investment stance in relation to each other.
Siemens Energy sale good for Conti group spin off – Analysts
VitescoFollowing the reports that Continental is in talks to sell off various parts of its wider group, analysts have responded positively to Siemens’ recent sale of its Energy division, saying it is good for Conti.
Upgrading their rating to “buy”, Jefferies analysts said: “Siemen’s recent spin-off of Energy gives confidence that Conti’s share price will benefit from its planned spin-off of Vitesco as the combined market cap of Siemens and Energy was up 7 per cent on the day of transaction (DAX +3%)” The implication, they explained, was that there was a discount in Siemens’ sum-of-the-parts valuation. That being the case, given Conti’s “more attractive transaction structure”, the analysts predicted that Conti’s “re-rating should be more pronounced.”
Pyrolyx withdraws from Australian and German stock markets
Reclaimed Carbon Black (rCB) firm Pyrolyx, which signed a five-year supply deal with continental in November 2019, has withdrawn from both the Australian and German stock markets.
Guizhou Tyre raises 1 billion yuan for Vietnam tyre factory in private share issue
Guizhou TyreOn 4 September 2020 Guizhou Tyre Co. Ltd’s board of directors approved plans for a private share issue. The plan was to raise 1 billion yuan in funding via the sale of now more than 200 million shares to 35 selected investors. By 11 September, the company had received the green light from the state-funded Guiyang Industrial Investment Holding Group Co., Ltd. that it would purchase no less than 43.5 per cent of the issued shares.
Bitumina becomes Nynas’ largest shareholder
NynasHaving exited US sanctions in May 2020, Nynas – which supplies oils to the tyre and rubber industries – has continued an eventful year by announcing significant ownership changes that put Bitumina in a commanding position amongst its shareholders.
Michelin launches BIB Action 2020 employee share ownership plan
MichelinMichelin has introduced an employee share ownership plan. Bib Action, as the plan is known, gives Michelin group employees the opportunity to subscribe to a rights issue reserved for them under preferential terms – namely at a discount. Michelin’s managing chairman decided to carry out the rights issue in order to “more deeply involve employees in the group’s growth and development through a dynamic relationship built on mutual commitments”. The subscription period for the five-year minimum ownership share scheme will run from 16 September to 1 October 2020. The rights issue was authorized by the Annual Shareholders Meeting of 23 June 2020 in the 22nd resolution.
Analysts support Continental AG reform programme
Google, share profile, 02/09/20Financial analysts are reacting positively to the far-reaching restructuring measures announced by Continental AG yesterday that could cost up to 22 per cent of the 59,000 jobs in Germany alone.
Conti rated as ‘buy’ for ‘best cost base’ in the tyre business
Following comparably strong second-quarter 2020 results, some financial analysts have confirmed their “buy” rating for Continental AG shares. The reason? Ongoing cost-cutting plans as well as “deep restructuring measures”. Writing in an investor’s note published on 7 August, Jefferies equity research suggested Conti’s planned spin-off of its Vitesco powertrain operation plays a key role in this strategy:
Shares in Hankook rally as Cho Hyun-bum becomes largest shareholder
HankookChairman Cho Yang-rai has sold his 23.59 per cent stake in Hankook Technology Group Co Ltd to his son Cho Hyun-bum. The sale makes the chief executive the largest shareholder of the parent company of South Korea’s largest tyre manufacturer, with around 42.9 per cent.
Michelin, Conti “well positioned” for market change: Goldman Sachs
GoogleMichelin and Continental stocks are rising, despite the severe impact of the coronavirus pandemic and governmental lockdowns on demand. US investment bank Goldman Sachs today raised the target price of shares in the two manufacturers, rating Michelin as ‘Buy’ and Continental as ‘Neutral’. In his two research notes, Goldman analyst George Galliers increased Michelin stocks’ target price from 91 euros to 113 euros, and Conti’s from 75 euros to 92 euros.
