ERJ staff report (DS)
Mumbai, India -- In a brief statement to the Bombay Stock Exchange, Modi Rubber Ltd said it has agreed to sell all the equity in subsidiary Modi Tyres Company Limited to Continental AG. The statement continued, "such sale (and completion of transaction), still depends on fulfillment of several conditions contained in the agreements. After completion of the transaction, Modi Tyres Company Limited will become a wholly owned subsidiary of the Continental Group."
Financial details were not revealed. Neither Continental nor Modi responded immediately to requests for clarification, but the Indian press carried many stories adding detail to the news.
Continental said in a statement â€œThis development underlines Continental's commitment to the Indian market and is part of the company's strategy to invest in growing markets in Asia for its core businesses."
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Stock Exchange announcement from Modi Rubber
Press release from Continental AG
India Infoline (India)
The Hindu Business Line (India)
Economic Times (India)
Business Standard (India)