Vredestein Archives - Page 22 of 37 - Tyrepress

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Sibur Still Interested in All of Amtel-Vredestein

Sibur Russian-Tyres is still moving towards an acquisition of Amtel-Vredestein’s (A-V) bankrupt Russian operations, with all parts of the fractured business remaining under consideration. Sibur Russian-Tyres initiated this approach in late January 2009 stating its interest in buying $600 million of Amtel-Vredestein’s $800 million debt. However earlier news reports, also published by Kommersant, suggested other parties are also interested and may be attempting to take control of certain assets.

2nd July 2009/by Tyrepress Editors

Apollo to Launch Full Range into Europe in 6-12 Months

Despite the fact that the Apollo/Vredestein takeover contracts were signed just a month before Tyres & Accessories visited Enschede, the integration process is said to be already well underway. What’s new is the announcement that in less than a year a full range of Apollo tyres will be launched into the European market. The newly merged Apollo Vredestein will be responsible for sales and marketing of all group brands in Europe. Of course when it comes to making major changes to the Apollo brand strategy this will have to be done in consultation with Delhi, but to all intents and purposes Vredestein will be masters of their own and Apollo's destiny within the bounds of the continent of Europe and the USA. In return Apollo will take the lead when it comes to selling Vredestein-branded tyres into the new Asian market territory the recent combination of the two companies brings.

2nd July 2009/by Tyrepress Editors

A New Beginning

On 15 May 2009 Apollo Tyre’s purchase of Vredestein Banden was completed with the signing of contracts ratifying a deal estimated to be worth between 175 million and 220 million euros. The new combined company, Apollo Vredestein BV, will operate as a wholly owned subsidiary of the Indian tyre giant Apollo, with full responsibility for selling all of both company’s tyre brands (Vredestein, Maloya and Apollo) in Europe. Having witnessed Amtel-Vredestein go to the wall earlier this year, observers agree that the company's previous alliance with the now defunct Russian tyre maker turned out – with the benefit of hindsight – to have been a mistake.

Nevertheless Vredestein's re-marriage to an ambitious manufacturer with its own designs on European market access puts the new combined company just outside the top 10 global tyre manufacturers, somewhere around 12 or 13; fulfils Vredestein’s desire to find emerging market production capacity and a route into the related sales markets; and is being hailed as a new beginning for Dutch tyre maker. Tyres & Accessories recently travelled to Apollo Vredestein BV's Enschede headquarters and asked the newly merged company's CEO, Rob Oudshoorn, why it will be second time lucky for the tyre manufacturer.

1st July 2009/by Tyrepress Editors

Amtel-Kirov Plant Enters Bankruptcy Protection

Following the official bankruptcy of Amtel-Vredestein NV in April, and the subsequent sale of Vredestein Banden and its subsidiaries to Apollo Tyres, the Russian holding company’s Kirov manufacturing operation entered voluntary bankruptcy on 22 June. OJSC Amtel-Vredestein entered bankruptcy on 3 June 2009 with subsidiary OJSC Tyre Complex AmtelChernozemje doing the same on 20 May 2009. According a report in the local Kommersant newspaper, the decision was reportedly made after accounts payable mounted up to 982 million rubles (£20 million) in the first quarter 2009 compared with a net asset value of about 840 million rubles (£16.337 million).

Kommersant estimates that the total debt load of Amtel-Vredestein’s Russian units adds up to more than US$450 million. Negotiations with creditors, the largest of which is said to be Sberbank, which is apparently owed US$100 million, are currently underway. However, the newspapers are also speculating about some more ‘creative’ kinds of debt restructuring. Arguably, the most interesting of these sees Kommersant name Pirelli as a foreign investor willing to expand its interests in Russia beyond the tyre production joint venture it signed with Russian Technologies in November 2008. Apparently certain government officials discussed the idea with the leadership of Amtel-Vredestein in late March. However, the newspaper also quotes Sibur Russian-Tyres director, Igor Karavaev as saying he considers it unrealistic that any investors will be able to purchase Amtel’s assets, especially foreign players.

30th June 2009/by Tyrepress Editors

Vredestein Quatrac 3 Range Extended to Cover SUV Sizes

In the two years since Vredestein released its Quatrac 3, the company reports that the all-season tyre has proven to be “phenomenally successful.” The tyre range has now been extended to include SUV fitments, and these new additions are based upon many of features found in the passenger car range.

The tyre’s extra wide tread, comments Vredestein, ensures an even better road-holding and offers exceptional stability without compromising on comfort.

25th June 2009/by Tyrepress Editors

Reports: Michelin to Sell Apollo Stake

Indian news sources are reporting that Michelin is intending to sell the remaining 7.3 per cent shareholding it has in Apollo tyres. On June 6 2009, Michelin sold a portion of its Apollo stake for approximately 500 million rupees (£6.67 million). The French manufacturer, which held an 11 per cent share in Apollo at the time, sold 3.3 per cent through open market sales. The company has held shares in Apollo Tyres since it acquired a 14.9 per cent stake in early 2004, a deal made at a time when a truck and bus radial joint venture between the two companies seemed likely.

Despite the venture’s failure to get off the ground and the September 2005 announcement that Michelin would acquire Apollo’s share in the joint venture, Michelin maintained its stake in the Indian company. According to reports, the French tyre manufacturer has made “a reasonable profit” from the sale of its Apollo shares. The reports follows Apollo’s takeover of Dutch tyre maker Vredestein Banden for a reported 175 million euros in May.

18th June 2009/by Tyrepress Editors

Russian Court Receives Amtel-Vredestein Insolvency Application

Official confirmation has been given that, on June 3, OJSC Amtel-Vredestein – the Russian operating unit of Amtel-Vredestein NV – filed for insolvency with the Moscow Arbitration Court. The company states this was carried out in accordance with the requirements of Russian federal law number 127, and Amtel-Vredestein has requested the granting of a monitoring period in line with article 62 of the abovementioned insolvency law.

Upon formally announcing the filing for insolvency, the tyre manufacturer stated that “given the deteriorating position of the company and increasing number of creditors’ claims to repay debt or foreclose on the company’s mortgaged assets, this action is necessary and unavoidable.” Established court procedure, added Amtel-Vredestein, will see the appointment of an administrator who will run the monitoring procedure for the company.

8th June 2009/by Tyrepress Editors

SRT to Buy Bankrupt Amtel-Vredestein Factories?

According to a Reuters news brief, Sibur Russian Tyres is seeking to acquire the Russian tyre factories belonging to the bankrupt rival Amtel-Vredestein. The company’s deputy head is reported as saying this acquisition would take place with co-financing from the state.

4th June 2009/by Tyrepress Editors

Apollo Vredestein Banden Buyout Imminent

Apollo’s vice chairman Neeraj Kanwar was quoted today as saying “We are looking at closing this deal [to acquire Vredestein Banden] in the next few days,” a new press release indicates. Indian manufacturer Apollo Tyres expects to acquire Dutch sector player Vredestein Banden for an undisclosed sum soon, according to Dow Jones. The company’s board gave the green light to the buyout, which is part of Apollo’s strategy to expand its presence in Europe, on 30 April.

Vredestein Banden is fully owned by tyre producer Amtel-Vredestein NV. The company went into bankruptcy last month, but its unit Vredestein Banden and its European subsidiaries, which have separate financing arrangements, remained unaffected.

13th May 2009/by Tyrepress Editors

Apollo’s Vredestein Acquisition Worth $300 Million – Analyst

The Apollo Tyres acquisition of Vredestein Banden, which should be finalised in late May, is said to be a deal worth in the vicinity of US$300 million. This figure was put forward by India’s Hindustan Times and was provided by an industry analyst who wishes to remain anonymous.

“Vredestein was bought over by Amtel in 2005 for $260 million so this acquisition would at least amount to $300 million,” said the analyst. “The deal is a win-win situation for Apollo as it not only gets access to high-end technology which it can also bring into India, but also a firm marketing and sales foothold in Europe.”

7th May 2009/by Tyrepress Editors

Paper: Apollo Tyres to Pay $300 million for Vredestein

Indian newspaper, the Hindustan Times, has reported that Apollo Tyres is to pay $300 million for Vredestein Banden.

7th May 2009/by Tyrepress Editors

Amtel-Vredestein N.V. Declared Bankrupt

Following the news that Apollo Tyres is going to buy Vredestein Banden, the district court of Almelo in the Netherlands has declared the manufacturer’s former Russian-Dutch parent company (Amtel-Vredestein N.V.) bankrupt. As a result Amtel-Vredestein has released full-year 2008 financial results that chronicle the company’s continued decline from its poor full-year 2007 results. Full-year 2008 net losses almost doubled to US$446 million, compared with $242 million. The losses came despite relatively stable annual revenue of $881 million compared with $886 million in 2007.

The financial report also sheds a little more light on the timing of Apollo’s offer for Vredestein Banden. According to the company literature, the group received a “binding offer” to acquire 100 per cent of the issued share capital from Apollo in February 2009, two months before the news that such an offer became public. By this stage the offer had long been accepted by the company’s supervisory board, a decision that was made at some point in March.

1st May 2009/by Tyrepress Editors

Vredestein Banden Bought by Apollo Tyres

Apollo Tyres has agreed to buy Vredestein Banden following approval from the trustee in bankruptcy at the Almelo Court in the Netherlands which rubber stamped Apollo Tyres’ offer to acquire a 100 per cent stake in Vredestein Banden B.V. (VBBV), a 100 per cent subsidiary of Russia’s largest tyre manufacturer Amtel-Vredestein NV (AVNV). No details of price or further conditions have yet been released, however, according to an official statement on the matter, the parties will only be in a position to disclose this after “certain conditions have been met and certain approvals, including regulatory and statutory approvals are granted, wherever required.”

According to a statement Apollo Tyres’ board of directors gave their approval to the management to proceed with the acquisition of Vredestein Banden today (29 April 2009). Dutch newspaper, De Twentchse Courant Tubantia quoted Vredestein Banden CEO Rob Oudshoorn as saying: “We are relieved and happy…We have had good connections with Indian market leader Apollo for 15 years.”

29th April 2009/by Tyrepress Editors

Vredestein Launches Ultrac Cento

Dutch tyre manufacturer Vredestein has launched the new Ultrac Cento high performance tyre. At the launch, Vredestein UK managing director, Stuart Jackson explained that the company is aiming its latest tyre at the kind of high mileage, high performance motorists that drive Mercedes, Audis and other 16 to 17-inch 45 to 55 series fitments.

The Centro is 20 per cent lighter than its predecessor and has been developed with compliance to the new EU noise, wet grip and rolling resistance regulations that are scheduled for introduction in 2012. Therefore, as you would expect, it includes a –SW (noise and wet grip) mark on its sidewall signifying this. It is Y-rated, indicating that its can cope with speeds up to 300 km/h, and is already available in 13 sizes. This includes two run-flat fitments – 225/50 R17 94Y and 225/45 R17 91Y.

28th April 2009/by Tyrepress Editors

Shareholders Recommend Amtel-Vredestein OJSC Bankruptcy

On Friday 24 April Amtel-Vredestein OJSC’s shareholders recommended that managers enter the Russian part of the wider Amtel-Vredestein company into bankruptcy proceedings. At this stage the proposal remains a suggestion and it is expected to be weeks before the company makes a final decision on whether or not to enter bankruptcy protection. Tyres & Accessories contacted various Amtel-Vredestein OJSC company representatives, but none were willing to comment on the likelihood of Amtel-Vredestein OJSC declaring bankruptcy or what the effects would be on the company.

Were Amtel-Vredestein OJSC to enter bankruptcy, article 106 (2) of the Russian Federation Federal Law on Insolvency sets out a clear order of priority for creditors’ claims: According to Craig Averch, European Bank for Reconstruction and Development claims of citizens to whom the debtor is liable for harm to life or health shall be satisfied first; followed by settlements for the payment of “severance pay and wages with persons working under a labour agreement, including under contract, and for the payment of royalties under copyright agreements.” Third, creditors’ claims for obligations secured against property are to be taken satisfied, following by claims for “mandatory payments to the budget and for extra-budgetary funds.” The process concludes with settlements being made to all other creditors.

27th April 2009/by Tyrepress Editors