Michelin looking to go solo in India

Michelin looking to go solo in India
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First Published: Wed, Jun 17 2009. 10 33 PM IST
Updated: Wed, Jun 17 2009. 10 33 PM IST
Mumbai: France-based tyre maker Michelin and Cie. is looking to go solo in India and is close to selling its remaining 7.3% stake in Apollo Tyres Ltd, according to people familiar with the development who didn’t want to be named.
Michelin is in talks with bankers to sell its entire stake in the open market, said the people. Michelin sold a 3.3% stake in Apollo Tyres on 7 June at around Rs28.8 per share, raising around Rs40 crore.
Michelin’s relationship with Apollo goes back to 2004 when the French manufacturer bought 14.9% of the Indian company for Rs129 crore. Post 2005, when a proposed joint venture with Apollo Tyres was called off, Michelin started paring its stake in the Indian firm.
Michelin plans to set up a project in Tamil Nadu on its own, according to people in the auto industry who didn’t want to be named.
It is in advanced talks with the Tamil Nadu government, they said. Michelin is looking to raise funds by selling its stake in Apollo for the project, the people added.
An email query to Michelin failed to elicit a response. “Selling stake in our company is Michelin’s call and their stake has come down to 7.3% from over 14% in last 5 years, ” said a spokesperson for Apollo Tyres’ management.
cnbctv18@livemint.com
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First Published: Wed, Jun 17 2009. 10 33 PM IST