JK Tyre - Outcome of Board Meeting
JK Tyre & Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 11, 2008, inter alia, has considered the following proposal:
- Approved, subject to regulatory approvals and compliance with certain contractual and conditions precedent, the proposal to acquire 100% shareholding of a Mexican Tyre Manufacturing Company, having three plants in and around Mexico City in Mexico. The three plants together have a capacity to manufacture 290 Metric Tons per day (approx.)
With the above acquisition, the Company will get control over the complete Mexican Company along with its subsidiaries. The above acquisition besides providing various strategic and synergetic advantages to the Company and making it a global player, shall also provide a manufacturing base for Passenger Radial tyres and other tyres to the Company and allow it access to North American and the growing Latin American markets.
The closing of the transaction is likely to take place by end of May 2008. The above transaction involves a total consideration of approximately Rs 2700 million.
The Board also approved raising of bridge loan for this purpose for immediate finalizing of the transaction and approved raising of long term funds.
Tags: JK Tyre