JAKARTA (TheInsiderStories)– Indonesian automotive maker, PT Indomobil Sukses Internasional Tbk (IDX:IMAS) divested PT Multistrada Arah Sarana Tbk (IDX:MASA) shares to French tire manufacturer Michelin Group. The divestment value is Rp1.51 trillion (US$107.85 million).
President Director of Indomobil Jusak Kertowidjojo stated said in an official statement today (03/13), the company sold the shares through its subsidiary, PT Central Sole Agency, PT IMG Sejahtera Langgeng, and PT Indomobil Prima Niaga.
The company’ unit and other Multistrada‘ shareholders have met the requirements on the sale and purchase agreement on Jan. 22 and the amendment to the side letter on March 6.
On Jan. 23, Michelin acquired 80 percent shares of MASA for $439 million. The acquisition was carried out by the tire maker to strengthen the growing market in Indonesia.
Since last year, a number of global tyre companies have shown their interest to acquire MASA’ shares, such as Michelin and South Korea’ Hankook Tire. Since 2011, Hankook was attempted to buy Multistrada’ share but however it allegedly was unsuccessful amid the differences on the acquisition price.
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 or Rp280 a share. With the transaction, Tanuri’ 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 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. The tire maker, 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.
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