Private equity firms including Singapore state investor Temasek Holdings, US firms Advent International and TPG as well as KKR are bidding for US-based Warburg Pincus’s majority stake in Indian tyre maker Alliance Tire Group for about US$400 million, according to news reports.
Warburg Pincus, which invested in Alliance in 2007, is selling its 72% stake in the company, with final bids are expected to be invited by the end of this month. Two other minority investors may also sell their stakes in Alliance, giving the buyer a stake of around 75% in the tyre maker.
Alliance Tire expects sales of more than US$600 million in 2012; owns two manufacturing plants, one each in Israel and India, and has a sales presence in more than 120 countries. The firm’s tyres are also made at contract manufacturing facilities in China and Taiwan.(RJA)
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