ERJ staff report (DS)
Debica, Poland -- Goodyear has announced investment plans for its majority-owned tyre factory in Debica, Poland. First, the company said it wants to, "support and cooperate with TC Debica to nearly triple its daily commercial truck tyre production -- to up to 5000 units a day -- to meet increasing demand in Europe." Goodyear said, "Dependent on TC Debica obtaining appropriate tax incentives under Debica's Special Economic Zone, this would make TC Debica one of Goodyear's largest suppliers of commercial truck tyres in the world and provide TC Debica with additional state-of-the-art technology from Goodyear. It also would provide significant opportunity to increase TC Debica's earnings, beginning in 2008."
Second, Goodyear said it aims to increase its stake in the company to 66 percent, from just under 60 percent. Goodyear said the company would remain listed on the Warsaw Stock exchange. The investment in the tender by Goodyear totals approximately $40 million to $45 million (Euro 27 million to Euro 30 million).
As part of the deal, Goodyear plans to offer to buy all outstanding shares over the next 18 months.
In wake of these moves, PZU Asset Management S.A., acting on behalf of Powszechny Zaklad Ubezpieczen S.A., Powszechny Zaklad Ubezpieczen na Zycie S.A. and two PZU investment funds (PZU), will withdraw the motions previously submitted for Debica's Extraordinary Shareholders Meeting, as the actions outlined in the agreement address the concerns expressed by the minority shareholders.
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Press release from Goodyear