KAMA TYRES assessed at 2bn rubles
The buyout price of common and preferred shares of KAMA TYRES in Tatshina’s offer is known
Tatshina, which is controlled by Tatneftekhiminvest-holding public holding, is finalising the consolidation of 100% of KAMA TYRES shares. Its shareholders are offered to buy 18% of shares of the enterprise, a total of 277,3 million rubles will be spent on their buyout. So Tatneft’s May deal on the sale of the main tyre asset could vary, according to the roughest estimates, between 1,5 to 2 billion rubles. Now Tatneft is going to buy Finnish Nokian Tyres factory in Russia for €400 million or 3,2 billion rubles. Read more in Realnoe Vremya’s report.
Offer for 18%
Tatshina management company that got Tatneft’s petrochemical assets in May is finalising the legal reregistration of its rights in the company. Owning 82% of KAMA TYRES, the Tatarstan public company sent its shareholders an offer to buy out the rest of shares. The state company offered to buy common shares for 23,8 rubles and preferred ones for 21 rubles, reads a message about the corporate events. According to it, the company will be read to buy 9,858,773 common and 963,910 preferred shares. This is equal to 18% of shares. So 277,3 million rubles are going to be spent on their buyout. The offer is valid through 8 March inclusively.
Tatshina specified that the mandatory offer was made to meet the commitments envisaged by federal law on Joint-Stock Companies.
“The 75% ownership threshold was crossed when buying the asset. This obliges the majority shareholder to make an offer the rest of shareholders to buy out the shares,” the company explained. The shareholders can announce the sale of shares until 8 March but they may also not sell them.
The buyout price for common shares at 23 rubles was fixed according to the weighted average value of shares at Moscow Exchange in the last six months of 2022, the company noted.
“Moscow Interbank Currency Exchange has the documents confirming this value,” Realnoe Vremya’s interlocutor from Tatshina assured us.
The market price for preferred shares of 21 rubles was fixed on the basis of an independent evaluation in the last six months.
“But it isn’t below the last deal price,” he noted.
So Tatneft’s May deal on the sale of the main tyre asset could vary, according to the roughest estimates, between 1,5 and 2 billion rubles.
KAMA TYRES turns out cheaper than Nokian Tyres
It should be reminded that this May Tatneft announced the signing of an agreement with KAMA TYRES on the sale of the tyre business. The perimeter of the deal included the shares of KAMA TYRES, Nizhnekamsk Mechanical Plant, Yarpolymermash-Tatneft as well as shares of Tatneft-neftekhim MC, Nizhnekamsk Cargo Tyre Plant and Kama Trading House. Tatneft didn’t make the value of the deal and the amount of shares public. The intention was to “focus on key strategic projects,” the company explained. The capacity of KAMA TYRES is 10 million pieces. At its heyday, KAMA TYRES was involved in the equipment of AvtoVAZ.
Later, Tatneft said that the total value of sold shares was 35,5 billion rubles.
“In the second quarter of 2022, the group sold shares in subsidiaries in the tyre business to a state-controlled company for 35,555 million rubles on conditions of paying by instalments. The fair value of the compensation based on discounted money flows was 11,499 million rubles. Amid significant changes in the economic situation, including those caused by geopolitical processes, the sale of the tyre business will allow the group to focus on key strategic projects,” Tatneft’s report read.
It is noteworthy that nowadays Tatneft submitted an application in the Russian Federal Anti-Monopoly Service to buy Nokian Tyres plant with a capacity of 17 million pieces.