JAKARTA (TheInsiderStories) – French tire manufacturer, Michelin Group, acquired 80 percent shares of PT Multistrada Arah Sarana Tbk (IDX:MASA) for US$439 million, said the company today (01/23). The acquisition was carried out by Michelin to strengthen the growing market in Indonesia.
Since last year, a number of global tyre companies have shown their interest in acquiring MASA’ shares such as Michelin and South Korea’s Hankook Tire. Since 2011, Hankook was attempted to buy Multistrada’s share but however it allegedly was unsuccessful amid the differences on the acquisition price.
While, Micheline and PT Chandra Asri Petrochemical Tbk (IDX: CAPC) has formed a joint venture company PT Synthetic Rubber Indonesia to take advantage of growing tire demand, both at home and in other Asian countries.
Before the acquisition process, since October, 2018, President Director of MASA Pieter Tanuri has bought 86.5 million shares of the company with a transaction value of Rp24.22 billion ($1.71 million) or Rp280 a share. With the transaction, Tanuri’s share ownership in MASA increased to 1.89 billion shares from the previous 1.8 billion shares.
Michelin said in a written statement, that it would hold a tender offer to buy all remaining MASA shares at the same price with the acquisition price, in accordance with Indonesian capital market rules. The manufacturer will pay for this acquisition from internal funds.
The company’ CEO Jean-Dominique Senard said the acquisition was the right opportunity for Michelin to expand its market in Indonesia. He noted, “Indonesia as the highest population in Southeast Asia has a growing market potential.”
Meanwhile, Tanuri believed that Michelin is the right partner for Multistrada to face the future. Michelin said will strengthen its presence in the domestic market by utilizing technical expertise and limited new investment.
The tire producer will gradually convert the production of passenger vehicle tires from level third quality to level second under the Michelin brand. Thus, it will encourage growth in demand for quality tire 2 in Europe, North America and Asia.
Multistrada is a local tire manufacturer which has a production capacity of more than 180,000 tons consisting of 11 million tires of four-wheeled passenger vehicles, nine million two-wheeled vehicle tires and 250,000 truck tires. In 2017, MASA’s net sales were recorded at $281 million.
Written by Staff Editor, Email: email@example.com
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