Titan subsidiary goes public in London
Titan International Inc. is trading shares of its wholly-owned subsidiary, Titan Europe Plc, on the London AIM stock market.
Earlier today, Titan made 26,775,000 shares of Titan Europe available at an opening price of approximately $2.25 a share.
Titan International says it anticipates gross proceeds of $60 million -- before fees and expenses -- from the sale. The money will be used to "pay down debt and solidify the company's financial position."
As the single largest shareholder, Titan International will retain 30% interest in Titan Europe.
"This well-timed transaction will result in enhanced growth opportunities for both companies," says Morry Taylor, CEO and president of Titan International. "With the completion of this transaction, both Titan International Inc. and Titan Europe Plc will have the financial structure to facilitate future acquisition projects and maximize value for our stockholders, customers and employees.
"Our two companies will continue to function like two hands, independent but working together in coordinated efforts."
While Titan International concentrates on growing in North America, Titan Europe will expand beyond the United States, Canadian and Mexican borders.
"The ability to operate as an independently quoted company presents significant growth opportunities for Titan Europe," says Mike Akers, the European company's new CEO and president.
Titan International's stock price on the New York Stock Exchange closed yesterday at $5.95. That compares to a 52-week high and low of $6.39 and $.62, respectively.