There’s no substance to the rumour about a merger with Michelin-owned tyre maker PT Multistrada Arah Sarana Tbk, says PT Gajah Tunggal Tbk. Indonesian financial publication Kontan reports that when asked to confirm or deny the alleged transaction, Gajah Tunggal’s finance and accounting director Kisyuwono responded that the rumour is “not true”.
Following a successful public offer, Michelin now holds a 99.64 per cent shareholding in Indonesian tyre maker PT Multistrada Arah Sarana TBK. After acquiring an 87.59 per cent share of Multistrada on 8 March, Michelin launched a public offer for the remaining outstanding shares, at the same price per share as previously offered. The transaction enabled Michelin to acquire an additional 12.05 per cent in the company.
On Friday, Michelin announced its acquisition of 88 per cent of Indonesian tyre maker PT Multistrada Arah Sarana TBK (Multistrada) for US$480 million. The share purchase was completed in line with the terms announced on 22 January 2019 and after obtaining all necessary approvals. As part of the transaction, Michelin also takes on a 20 per cent stake in the tyre retail and automotive service chain PT Penta Artha Impressi, as well as 50 hectares of land.
It is not unusual for the start of the year to be replete with corporate acquisitions. Some even happen while much of the western world is enjoying Christmas and new year holidays. While European FinTyre Distribution (EfTD) did indeed enact the latest move in its ongoing strategic purchasing programme during the 2018 holiday break, it seems that this year February was the month of choice for getting the chequebooks out, with Bridgestone, Michelin and – in the UK at least – Goodyear all announcing strategic spending. For different but connected reasons all three challenge us to consider the impact of changing mobility trends.
Michelin has agreed to buy 80 per cent of PT Multistrada Arah Sarana TBK, the Indonesia-based tyre manufacturer. With a production capacity of more than 180 thousand tons (which equates to 11 million passenger car tyres, 9 million two-wheel tyres and 250 thousand truck tyres), Multistrada generated net sales of US$281 million in 2017.
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.
In the USA, Multistrada is recalling 6,318 Achilles Desert Hawk A/P LT in size LT215/85 R16 115/112R 10PR. According to a National Highway Traffic Safety Association (NHTSA) recall notice, the tyres have the DOT date code range 1915 to 3618.
During the first quarter of the year, PT Multistrada Arah Sarana sold 72 per cent more Corsa motorcycle tyres than in the corresponding quarter of 2016. The Indonesian tyre maker reports selling 1.4 million Corsa motorcycle tyres during the three-month period. This substantial first quarter growth follows a 33 per cent increase in 2016. Last year, the Indonesian tyre maker sold 4.4 million Corsa motorcycle tyres, up from 3.3 million a year earlier.
The Paris Saint-Germain Academy in Bali, an initiative jointly set up by the French football team and its tyre partner PT Multistrada Arah Sarana, held its first training session this week. The inaugural training on 28 January marked the start of twelve-month programme that will see six to 19 year olds develop their football skills at sessions held three times a week.
Yesterday in Bali, French football team Paris Saint-Germain and its tyre partner, Indonesian manufacturer PT Multistrada Arah Sarana. Tbk, announced the forthcoming opening of a year-round Paris Saint-Germain Academy run by Indonesian first-division club Bali United. This announcement is supported by the implementation of an exchange programme on training skills and methodology between both clubs through the Parisian youth development academy.
According to Pieter Tanuri, president director of Indonesian tyre maker PT Multistrada Arah Sarana Tbk, the company is aiming for a “ten to 15 per cent increase in revenue” during 2016. Multistrada intends to support this rise through higher exports and will accommodate this hoped-for increase in unit sales by boosting production capacity for both car and motorcycle tyres. “Exports are the highest sales contributors,” noted Tanuri, adding that sales in export markets account for 70 per cent of total company sales.
According to Indonesian news agency Antara News, tyre maker PT Multistrada Arah Sarana – manufacturer of the Achilles, Corsa and Strada tyre brands – has signed a contract to build a production facility in Kazakhstan. The agency quotes Kazakhstan’s ambassador to Indonesia, Ashkat Orazbay, as stating that “a contract has been signed between Multistrada Indonesia and a Kazakhstan-based company to build a tyre factory.” Antara News did not report the name of the Kazakhstani company or give any further details about the project.
According to Pieter Tanuri, Indonesia’s PT Multistrada Arah Sarana aims to increase its domestic market share from 13 to 15 per cent in the next two or three years. The president director was quoted by The Jakarta Post as saying this two per cent rise would be achieved through increasing total production capacity to around 17 to 18 million tyres per annum over the next year. Currently, Multistrada produces ten million car tyres and six million motorcycle tyres.
According to unverified news published by Indonesian business publication Kontan and repeated in English by Reuters, tyre maker PT Multistrada Arah Saran has cancelled its plan to build new plants in Egypt and Kazakhstan this year. Even Go, investor relations officer at Multistrada, said this decision was taken due to concerns about political instability and security within the Middle East region.
The Jakarta Globe reports that Multistrada Arah Sarana intends to diversify into industrial real estate. The tyre maker is believed to be making this move in response to alleged Indonesian government plans requiring all manufacturers to relocate to industrial estates before December 2012. Company president Pieter Tanuri said the new subsidiary will be called Kawasan Industri Multistrada and will build an industrial estate on 210 hectares of land near Jakarta. While Tanuri has not disclosed the level of investment Multistrada is making in the project, the company president said he expects construction to be complete by December 2014.
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