Interested parties vie to acquire Indonesian tyre maker Multistrada
Quoting sources from the “investment banking industry,” BusinessKorea reports that “a number of global tyre companies” have shown interest in acquiring Indonesia’s second-largest tyre maker, PT Multistrada Arah Sarana Tbk. The publication names Hankook Tire and Michelin as two of the interested parties.
BusinessKorea comments that this isn’t the first time Hankook Tire has shown interest in acquiring Multistrada. A takeover was attempted in 2011, however it allegedly was unsuccessful “due to differences on the acquisition price with the seller.”
Multistrada produces passenger car radials, motorcycle tyres, truck and bus radials and solid tyres. Last year the company manufactured 7.61 million PCR and 5.15 million motorcycle tyres (respective production capacity was 10 million and 6 million units) as well as 70,880 TBR and 9,630 solid tyres. Its two tyre brands are Corsa, its motorcycle tyre brand, and Achilles; the tyre maker also manufactures off-take tyres for other companies, including motorcycle tyres for Michelin under a memorandum of understanding signed last year. Multistrada’s net sales in 2017 amounted to US$281.0 million, with exports accounting for 77.2 per cent of the total. Net profit reached $8.1 million.