CLERMONT-FERRAND, France — Group Michelin has increased its ownership stake in Indonesian tire maker P.T. Multistrada Arah Sarana TBK to 99.64%, following a public offer for shares it didn't acquire earlier.
Michelin paid $480 million in the first quarter to acquire 87.59% ownership of Cikarang, Indonesia-based Multistrada, producer and marketer of the Achilles and Corsa brands, as well as a number of private brands.
At the same time, Michelin launched a public offer for the remaining outstanding shares at the same price per share as that offered for the shares already acquired.
The transaction enabled Michelin to acquire an additional 12.05% of the share capital, bringing its interest in Multistrada to 99.64%. The additional share purchase is valued at $65 million, bringing the total purchase price to $545 million for a company that generated $317 million in revenue in fiscal 2018.
The deal provides Michelin with annual capacity of more than 180,000 metric tons of production and strengthens its presence in the fast-growing Indonesian market. The deal includes a 20% stake in the Indonesian retailer P.T. Penta Artha Impressi and 123 acres of available land, according to Michelin.