ERJ staff report (DS)
Moscow -- Sibur Russian Tires (SRT) and Amtel-Vredestein (A-V) have outlined their proposals to bring the two companies together. These appear to be on the lines previously reported in ERJ.
In a statement, Amtel-Vredestein said, "The boards of Amtel-Vredestein and Sibur Holding ... have reached agreement on the terms of the acquisition by Amtel-Vredestein of the entire issued share capital of Sibur Russian Tyres" The parties said the deal would be in exchange for the issue to Sibur Holding of almost 160 million new shares in Amtel-Vredestein.
Meanwhile, Amtel-Vredestein will issue a tranche of new shares to Sibur Holding. Thus the deal becomes a reverse take-over in which Sibur Russian Tires becomes the driving partner, gaiing control of Amtel-Vredestein, while the company name remains as Amtel-Vredestein.
As part of the complex deal, new funds of up to $190 million are made available. $40 million in two equal tranches from SRT as working capital and a further $150 million through the issue of new shares, to be used as development capital to ensure production can be modernised and factories can be completed. Sibur Russian Tyres will provide some or all of this funding.
If the acquisition completes, Sibur Holding will own 70% of the enlarged group as a result of the acquisition alone and not less than 60.5% of Amtel-Vredestein's enlarged share capital as a result of the acquisition and placement.
The parties expect that Vadim Gurinov of Sibur Russian Tyres will be appointed chief executive of Amtel-Vredestein once the deal completes.
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Press release from Amtel-Vredestein