Amtel-Vredestein Founder Reduces Share in Company
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.