On 1 April, HOdo Group transferred its 389 million shares of Jiangsu General to Jiangsu SOHO Holdings through an agreement transfer. The transfer price was 544 million yuan per share, totalling 2.12 billion yuan (about £226 million; €270 million).
On the evening of 27 March, Pirelli CEO Andrea Casaluci stated that “Pirelli’s management will continue to work on finding a solution that will allow the company to adapt to the new regulations of the American market, as it does in all the markets in which it operates”. That statement follows reports that Pirelli’s board is calling for Sinochem to reduce its stake in the well-known tyremaker due to fears that too close an association with China could hamper Pirelli’s international growth, especially in the USA where President Trump has fired several volleys in a trade war designed to protect US manufacturing and wider economic interests.
Jiangsu General said that its controlling shareholder, HOdo Group, is planning to change the company’s control. According to the tyre manufacturer, “HOdo Group intends to transfer its 24.41% shares in the company to Guangzhou Industrial Investment Holding Group or its designated entity”.
China Wanda Group, the parent company of Shandong tyre manufacturer Wanda Boto, has become the controlling shareholder of Shenghang Group. Li Taoyuan, the former controlling shareholder and actual controller of Shenghang Group has signed a share transfer agreement and a voting entrustment agreement with China Wanda Group.
Doublestar’s board of directors has approved a transaction plan to control Kumho. Specifically, the company plans to purchase assets by issuing shares and paying cash and ultimately achieve the goal of indirectly holding 45 per cent of Kumho’s shares and becoming Kumho’s controlling shareholder. Prior to this, Doublestar’s controlling shareholder, Doublestar Group, and several other Chinese companies jointly held this part of the equity. In other words, Doublestar can officially manage Kumho’s operations after this transaction.
Elliott Investment Management L.P.’s 11 May open letter to Goodyear’s board of directors sent shockwaves through the company and the markets. Essentially, Elliott’s expounded on its “deep conviction in the opportunity for Goodyear to improve after more than a decade of underperformance”, which was widely interpreted as laying down the gauntlet to Goodyear’s board and most senior executives. With Elliott calling pistols at dawn in the mid-west, the question is: is it time to buckle up and circle the wagons in Akron or are vultures circling over Goodyear? Here, Tyres & Accessories presents an in-depth analysis of Elliott’s arguments for enormous change, critically evaluating the problematic areas Elliott identifies along the way. In order to support our analysis, we spoke to senior executives close to Goodyear, those with first-hand management experience in Akron, financial analysts and third-party market researchers.
Following the retirement of two of its founding directors, Paul and Kathryn Beaurain – who retire after more than 30 years, Pro-Align is now under sole ownership. Established in 1990, husband and wife paring Paul and Kathryn Beaurain founded Pro-Align alongside Philip Wylie, who will continue as the company’s sole owner, utilising his extensive automotive industry and investment banking experience.
Pirelli’s largest shareholders have amended their ownership agreement and – at the same time – certain parties have ended their co-investment stance in relation to each other.
Fintyre, the large but troubled European tyre distribution enterprise, has confirmed that it is talking to “potential new investors” in a statement designed to clarify its ongoing position “given the events that have taken place in the last few months”.
Liqui Moly is getting a new owner. At the turn of the year the CEO Ernst Prost is selling his company shares to the Würth Group. “I have hereby secured the future of Liqui Moly for a time when I may no longer be at the helm myself,” says Prost. He remains the CEO of the corporate group.
In the early hours of 23 March 2015 Beijing Time, ChemChina’s China National Tire & Rubber Co. (CNRC) subsidiary signed an agreement with Camfin S.p.A. to purchase Camfin’s 26.2 per cent Pirelli shareholding at 15 euros a share. This values Pirelli at around 7.1 billion euros (£5.15 billion pounds). A joint tender offer by ChemChina, Camfin and other investors on the rest of Pirelli’s shareholding is now expected to follow.
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