French tyre maker Michelin has announced a tender offer for public shares in Indonesian tyre producer Multistrada Arah Sarana (MASA) as part of the company’s plan to delist and transition to a private entity. The move follows approval from the extraordinary general shareholders meeting (RUPSLB) held in December 2024.
According to Multistrada’s management, Michelin is prepared to purchase up to 33.18 million shares, representing 0.36% of the company’s total issued and paid-up capital. The tender offer is priced at Rp 8,400 (US$0.52) per share, with an aggregate transaction value of up to Rp 278.71 billion (US$17.88 million).
“Michelin has sufficient funds to fully execute the tender offer,” the company stated in its tender offer document.
Currently, Michelin holds 99.64% of Multistrada’s shares, equivalent to 9.15 billion shares. The remaining 0.36% of shares are held by 646 public investors, a relatively small portion of the company’s capital. These public shares are not actively traded and are considered illiquid.
“This tender offer provides public shareholders an opportunity to achieve an attractive return on their investment in Multistrada,” the management stated.
Multistrada, a member of the Michelin Group, operates in the highly competitive global tyre business. According to the company, the transition to private status is part of Michelin’s strategy to achieve greater operational integration across its global network, allowing shared resources and improved economies of scale.
The change is expected to enhance the company’s agility in responding to market dynamics in the global tyre industry.