Shareholders okay Cooper Tire sale to Apollo Tyres
Shareholders of US-based Cooper Tire & Rubber Co have approved its sale to Apollo Tyres Ltd making this $2.5 billion (Rs 14,500 crore) transaction, one of the largest acquisitions by an Indian firm of a US based company. The company said that around 78 per cent of Cooper's outstanding common shares were voted, with more than 48 million shares voted in favor of the merger, representing approximately 96 percent of Cooper's voted shares. Once completed ,this merger will result in the creation of the seventh biggest tyre company across the globe.
Onkar Kanwar, chairman and Neeraj Kanwar, vice chairman & MD of Apollo Tyres
"We are pleased stockholders endorsed this compelling transaction (Cooper's sale to Apollo tyres), which will create a $6.6 billion leader in the tyre industry with a strong global footprint that includes a presence in the world's largest tyre market of North America as well as in the fastest growing geographies of India and China," Cooper Chairman, Chief Executive Officer and President Roy Armes said in a statement.
Apollo Tyres had announced its plans to acquire Cooper Tire & Rubber Company in an all - cash transaction on 12th June 2013. According to the merger agreement, Apollo Tyres would acquire Cooper's operations including its eight plants and 14,000 employees across the globe.
The American firm is the 11th largest tyre maker in the world with revenue of over $4 billion. Apollo Tyres has said that out of a total value of $2.5 billion to fund the acquisition, the Indian arm had taken a loan of only $450 million. While the company's Netherlands - based arm Vredestein, and Coopers cash flow will be leveraged for the major debt of $2.1 billion.
