Aeolus entrusted with majority stake in Prometeon

Jiaozuo, Henan – Aeolus Tyre has been entrusted with a 52% stake in Prometeon Tyre Group by China National Tire & Rubber Co (CNRC), said an Aeolus announcement dated 1 December.
 
The 52% stake was directly held by TP Industrial Holding, a company controlled by CNRC. After the transaction Aeolus owns 62% of Prometeon. The remaining 38% is held by High Grade (HK) Investment Management Limited.
 
The entrustment agreement aims to “further solve the problem of horizontal competition between Aeolus and Prometeon,” said the announcement.
 
The entrustment came into effect on 1 December 2020 and will last until 31 December 2023. It will be automatically renewed for a three-year period unless any party proposes to terminate or alter the agreement prior to its expiration.
 
Under the agreement, CNRC maintains the rights to the shares’ ownership, disposal and profit distribution as well as Prometeon’s liquidation and dissolution, along with rights to cash and assets upon such liquidation.
 
Aeolus is entitled to all remaining rights such as voting power, electing chairman and directors and making proposals to Prometeon’s shareholders’ meeting.
 
CNRC is Aeolus’ controlling shareholder owning 57.4%.