US tyre company Goodyear Tire & Rubber is looking to buyout the minority stake of shareholders in its Polish unit Debica. Goodyear has offered PLN279.4mn (US$98mn) or PLN59.5 (US$20.8) per share for the 34.01% stake in the Polish tyremaker. The offer will be open from October 12 2009 to November 10 2009.
Goodyear owns 66 percent of T.C. Debica’s 13.8 million outstanding shares and is offering 59.52 Polish zlotys ($20.96) per share for the shares it doesn’t own.
The offer will open Oct. 12 and conclude at the close of business on Nov. 10 in Poland, Goodyear said. The transaction will be funded with Goodyear’s cash and available credit.
About 80 percent of the tires T.C. Debica produces are sold to Goodyear or Goodyear subsidiaries under various Goodyear brands. Most of the rest are sold by Debica in Poland under the Debica brand.
Goodyear acquired 59.9 percent of T.C. Debica’s stock in December 1995 and an additional 6.12 percent in March 2008.
Since Goodyear’s acquisition of a majority stake, some of the minority shareholders have suggested that Goodyear distorts the selling price of materials and services to T.C. Debica and also the purchase price of tires, in order to reduce the company’s overall profit.