Titan International, the celebrated manufacturer of both Titan and Goodyear Farm Tyre brands has confirmed to buy the Titan Europe P.L.C through shares.
Titan International will buy the offer with one share of Titan International stock for 11 shares of Titan Europe stock and issues worth 6.24 million new shares to fill for this offer.
The Titan International said that share of its share is worth US$ 1.81 which makes the deal at about US$ 168 million that represents that premium of about 15 percent over the closing price of Titan Europe last Sept. 13.
According to sources, the shareholders of the Titan Europe only have until 1 pm. London time on Oct. 5 this year to accept this offer by the Titan International.
The bid of the Titan International covers 78.3 percent of Titan Europe’s stocks that it does not own yet as the remaining 21.7 percent of the company is owned by Titan International through its subsidiary, the Titan Luxembourg S.a.r.l
Titan International already said that this proposed offer opens opportunities for its Tire business in Europe and South Africa which will become the foundation of the existing cooperation between the Titan International Mining Services which is offering types, wheels and track services to large mines globally.
Titan Europe gained revenue of US$ 679 million in sales in 2011. (PRA)