3 Dec 2013
ERJ staff report (TB)
Nairobi, Kenya − East Africa investment conglomerate Sameer Investments Ltd. has offered to buy Bridgestone Corp.'s 14.9-percent stake in Kenyan tire maker Sameer Africa Ltd, reported Tire Business.
If approved and completed, the deal would raise Nairobi-based Sameer Investments' ownership in Sameer Africa to 72.1 percent, according to a company filing with the Kenyan stock exchange.
Acquiring Bridgestone's 41.5m shares at prevailing trading prices would value the deal at about $2.7m (€1.99m).
Sameer Africa is the former Firestone East Africa Ltd., established in Kenya in 1969 as a joint venture between Firestone Tire & Rubber Co. and the Kenyan government.
Bridgestone retained Firestone's share of the business when it acquired Firestone Tire & Rubber Co. in 1998, but Sameer Investments Ltd. gradually increased its control of the business over time. It continued to produce Firestone-brand tires under license until 2007 when Bridgestone's technical aid agreement with the Nairobi-based company lapsed.
Despite the break, Bridgestone retained its shareholding. Since then Sameer has concentrated on its own Yana brand. It also distributes the Bridgestone brand in Kenya and will continue to do so.
Sameer Africa reported $46.7m (€34.4m) in sales in fiscal 2012.
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