Vredestein (UK) Ltd managing director, Bert Stellinga, left the company on Friday 7 September. According to company officials, there are no plans to appoint an acting managing director and are no immediate candidates for the newly vacated position. Tyre & Accessories understands sales and administrative roles will be headed up from within the existing team while a suitable replacement is found.
Amtel-Vredestein N.V. (AV’s) has announced that Amtel founder and the Chairman, Dr Sudhir Gupta, stepped down as chairman of AV’s Supervisory Board on 31 August. Maxim Ignatiev, Chairman of the Board of Sport and Fashion Group (formerly Reebok Russia) and Amtel-Vredestein N.V. Vice-Chairman will become Acting-Chairman. Supervisory Board member, Tariq Chaudri, has also resigned as a director with effect from 4 September 2007.
Amtel-Vredestein N.V., has postponed plans to issue a previously announced 150 million euro Eurobond due to “adverse market conditions.” Instead, it plans to investigate a range of other funding options with Nomura International plc and other financial institutions.
“While a Eurobond may be an effective financial instrument, current market conditions are not optimal and an issue at this time could potentially restrict our pursuit of a more comprehensive financing programme,” said new CEO Peter Zolotarev. “Over the past several years, Amtel-Vredestein has expanded its production and distribution platform, and nearly completed its modernisation programme. We are currently re-visiting the Company’s development strategy and our first priority must be to strengthen the balance sheet to ensure long-term sustainability, profitability and stakeholder value.”
Vredestein believes there is a need and a good future for cold weather tyres in the UK, and is backing up its confidence in this often ignored market with the release of more winter weather products, including the new Quatrac 3 series, which will be launched at the end of September.
The Quatrac 3 can be visually distinguished by its non-directional asymmetric tread, and Vredestein adds that an examination of the tyre’s summer and winter tread profile sections will also reveal a clear distinction between the two. Upon its initial release the new tyre also offer a world first for all-season tyres – run-flat variants. Vredestein will offer two run-flat sizes when it launches the Quatrac 3.
For discerning motorists the new Quatrac 3 is a very attractive choice. As it is an all-season tyre, there is no necessity for the twice annual change between summer and winter tyres. “The Vredestein Quatrac 3 is a first-rate alternative for countries without extreme driving conditions like snow-covered, icy roads or steep hills,” Bert Stellinga, managing director Vredestein UK and Ireland, explained. “In plain or gently sloping areas and in temperate climates, the Quatrac 3 is the all-season tyre of choice. It offers optimum ride and grip characteristics under all circumstances.”
The founder of Amtel-Vredestein, Sudhir Gupta, has reportedly sold 17.9 per cent of his holdings, reducing his stake in the Russian tyremaker to 11.4 per cent. Analysts also expect Gupta to part with the remainder of his holdings, which they say means the free-float of the company could reach 59 per cent. Should this level be reached, the position of the holding’s senior management, including CEO Petr Zolotarev, would be significantly strengthened.
Gupta sold the 17.9 per cent stake between July 18 and August 22 at a range of US$5.21 to $5.68, which reportedly created $63 million to $69 million return to Gupta. The stocks were acquired by a number of Western capital funds. Russian media also reports that “Mr. Gupta will sell all stocks of the holding and withdraw from its board of directors.”
The tyremaker owns three factories with Russia; Moscow, Voronezh and Kirov, plus a plant in Enschede, the Netherlands, as well as the AV-TO chain of stores, which sell and automotive parts. The company sold thirteen million tyres in 2006.
Petr Zolotarev recently stepped into the role of CEO of Amtel-Vredestein, following the anticipated resignation of Alexi Gurin. The company has further announced the appointment on July 1 of Vadim Pesochinsky as company CFO.
Mr Gurin initially intended to leave the company once the terms of his departure were completed following his resignation becoming effective on July 1. However Mr Gurin agreed to remain as a member of the Executive Board until August 1 to aid in the transition to new management and to assist with the completion of the Company’s debut Eurobond.
Petr Zolotarev was most recently the chief executive officer of OJSC Russian Machines, which includes Group GAZ, aviation plant Aviacor and carriage-building enterprise Abakanvagonmash. Mr. Zolotarev also holds the position of chairman of the board of GAZ, the leading Russian commercial vehicle producer. Previously, he was acting president of Yukos Refining and Marketing.
Approximately a year after its acquisition by Russia’s leading passenger car tyre producer, Amtel-Vredestein’s Moscow Tyre Plant has manufactured its millionth Amtel brand tyre. Production of Amtel branded products began a month after the facility was acquired by Amtel-Vredestein in August 2006, and since that time both monthly output and product range have gradually increased. Amtel-Vredestein reports that 18 types of tyre are now produced in the factory, including four popular Amtel NordMaster2 models.
The new CEO of Amtel-Vredestein has indicated that the company’s plans for a debut eurobond issue of 150 million euros may be dropped. Petr Zolotarev, who began his new role on July 1 following the resignation of Alexei Gurin, told the news agency Reuters that “It may happen that the eurobonds will hamper the company’s restructuring.” However he added that the final decision had not as yet been taken.
The eurobond release was planned in order to re-finance existing debt, and financial services group Nomura International was to manage the sale of the three-year eurobonds, due on sale June 30. Amtel-Vredestein has debt of around 475 million euros, which arose from the company’s numerous past acquisitions, and Zolotarev is eager to return the company to the black. “We need a revision in our development strategy,” he stated.
According to a company report, the shareholders of the MShZ (Moscow Tyre Plant) elected a new board of directors at the manufacturer’s annual meeting on June 28. The Moscow Tyre Plant, which is owned by Amtel-Vredestein, has a share capital of 343.2 million roubles (£6.6 million). Amtel-Vredestein announced its intention to acquire the Moscow Tyre Plant last July, and in September commenced the production of tyres under the Amtel brand name.
Vredestein Banden recently achieved a major milestone by fitting its 1,000,000th Vredestein Space Master spare tyre, supplying the tyre to Audi for use in the Audi A6 All Road. Vredestein has been using the existing fitting machine for Space Master spare tyres since 2002. The company expects that the next milestone, namely 2,000,000 Space Master spare tyres, will be reached considerably more quickly, given the huge demand from the auto industry.
Thanks to the rise in the large number of SUV and 4×4 models in particular, the popularity of Vredestein’s Space Master spare tyres has grown enormously over the past few years, with many manufacturers opting for the Space Master and the high quality and level of service offered by Vredestein.
The Audi Q7 is the most recent model to be delivered with Vredestein’s Space Master. The Q7 has proven to be an exceptional success and the percentage of Space Master spare tyres fitted in Audi’s SUV is so high that Vredestein has to pull out all the stops in its production and installation processes in order to meet the huge demand.
Amtel-Vredestein released its audited 2006 Annual Report on June 15. The report remains subject to shareholder approval at the company’s Annual General Meeting of Shareholders, to be held in Amsterdam on June 30. The company previously published its summary 2006 and first quarter 2007 earnings results on 16 May 2007, and the audited accounts as included in this 2006 annual report are substantially the same as the previously reported un-audited results. However a number of adjustments have been made.
The company’s annual sales have been adjusted to $817 million versus the previously reported $823 million. This change occurred because $6 million in revenue has been reclassified as inter-company transactions in the fourth quarter of 2006. Profit from operations also reduced to $33 million from $36 million, primarily because of additional provisions related to AV-TO subsidiary. Net loss was also reduced by $2 million to a new figure of $5 million as a result of approved adjustments.
Amtel-Vredestein N.V. had confirmed that it has nominated Russian Machines CEO and Gaz Group Chairman Petr Zolotarev to its Executive Board. Acting Vice-President at Yukos Refining and Marketing, Vadim Pesochinsky, was also nominated to the Executive Board. Both appointments are to be effective July 1st, once they are approved at the company’s Annual General Meeting of Shareholders (AGM) scheduled for 30 June in Amsterdam.
Zolotarev is expected to succeed Alexei Gurin as head of the Company. Gurin, who joined the Company in 2001 and rose to the post of CEO in 2004, plans to leave the Group to pursue new opportunities as soon as the terms of his resignation are concluded — which is expected to be at the time of the Company’s AGM.
Amtel-Vredestein N.V. will debut a 150 million euro-denominated Eurobond by 30 June 2007. The company plans to use proceeds from the Eurobond to replace some of its existing debt positions. Nomura International plc will manage the sale of the unsecured Eurobond.
“I enthusiastically support Amtel-Vredestein’s inaugural Eurobond, which is expected to further align the Company’s funding structure with its operating needs,” said Supervisory Board Chairman, major shareholder and Amtel-Vredestein founder, Sudhir Gupta.
“We believe that this Eurobond will be an ideal new opportunity for investors to participate in Amtel-Vredestein’s debt portfolio and we fully support it,” said Vagan Abgaryan, Head of Asset Management, Senior Vice President of major shareholder Alfa Bank.
Auto Express magazine has named a Vredestein product as top performer in the tyre segment of the magazine’s Product Honours 2007 awards. The Vredestein Sportrac 3 performed well in the 15-brand tyre test that covered wet cornering, wet handling, dry handling, aquaplaning, wet and dry braking, noise levels and rolling resistance, coming out in the lead in all areas with the exception of dry braking and rolling resistance.
“The Sportrac3 stars on wet surfaces and is a worthy champion. A great tyre at a good price,” said Kim Adams, consumer editor of Auto Express. The report further added that “new Russian owners haven’t stopped the Dutch brand’s ability to produce a winning tyre, as this is Vredestein’s third victory in as many years.”
“Our engineers have once again achieved a remarkable success in producing tyres that are the best in an important and growing segment of the market,” commented Bert Stellinga, managing director of Vredestein UK, who further claimed “Our network of specialist tyre retailers throughout the UK can confidently promote Vredestein car tyres as the very best quality in the market today.”
Less than three months after stepping into the role of Amtel-Vredestein Group COO, Sergei Bokhanov has tendered his resignation, effective as of June 1. According to the company Mr. Bokhanov is leaving Amtel-Vredestein to accept a position with a company unrelated to the tyre or automotive sectors.
“Sergei played an important role in helping the company complete its transformation into a premium passenger car tyre manufacturer and leading tyre retailer, and he has been a valuable member of our management team during the numerous acquisitions and disposals the company completed over the past year,” said CEO Alexei Gurin. “We wish him every success in all his future endeavours.”
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