Michelin owns 99.6% of Indonesia’s Multistrada shares

French Group Michelin has recently acquired additional share capital of Indonesian tyre manufacturer Multistrada Arah Sarana (Multistrada) after a public offer for the company’s outstanding shares – Michelin’s interest in Multistrada now stands at 99.64%.

In March 2019, Michelin initially paid US$480 million for 87.59% ownership of Multistrada, and after the remaining shares were opened to the public, in line with Indonesian regulations, the additional share purchase brought the total acquisition to US$545 million – on top of a 20% stake in auto retailer Penta Artha Impressi and 123 acres of available land in Indonesia.

Multistrada, producer and marketer of number of private brands, generated some US$317 million in revenue in fiscal 2018. Michelin’s leverage will see extensive tyre production, undoubtedly strengthening its presence in the fast-growing Indonesian market.