Amtel-Vredestein terminates Sibur deal
Amtel-Vredestein has terminated its capital acquisition of Sibur Russian Tyres due to non-fulfillment of certain conditions of the agreement.
Amtel-Vredestein recently issued a statement to explain what happened:
"On June 30, 2008, the company entered into an agreement with Sibur Holding and Sibur Russian Tyres, setting out the term and conditions on which it was proposed that the company would acquire the entire issued capital of Sibur Russian Tyres.
"Closing of this acquisition was subject to a number of conditions precedent set out in the transaction agreement." Some of the conditions needed to be met by Sept. 30. One of those conditions was the execution of subscription letters "in respect of $100 million of new shares in the company, in addition to the $50 million new shares to be subscribed by Sibur Holding.
"As this and some other conditions have not been fulfilled...and as there has been no agreement to extend the long stop date, the agreement has automatically been terminated."
Amtel-Vredestein sells passenger tires under the Vredestein, Amtel and Maloya brand names. The tires are built in the Netherlands and Russia.
Sibur Russian Tyres makes Cordiant brand passenger and Tyrex brand truck tires. The company has 150 regional distributors in Russia and a subsidiary based in Germany.