YHI withdraws from Yokohama joint ventures

ERJ staff report (DS)

Singapore -- YHI International Limited is selling the shares it holds in two joint ventures with Yokohama Rubber (China) Co. Ltd., back to Yokohama. In a stock exchange announcement, the company said, "YHI has agreed to sell and Yokohama China has agreed to acquire (i) a 10 percent equity interest in Hang Zhou Yokohama Tire Co Ltd (“Hang Zhou

Yokohama”); and (ii) a 49 percent equity interest in Yokohama Tire Sales (Shanghai) Co. Ltd (“Yokohama Shanghai”), (collectively, the “Tire Companies”), for a consideration of approximately S$14,336,052 (euro 8.37 million) and S$7,999,944 (euro 4.67 million) respectively. "

Hang Zhou Yokohama is established in Zhejiang Province. Its principle business is in the manufacture and sale

of Yokohama-branded tyres. YHI currently holds 10 percent of the issued and paid up

share capital of Hang Zhou Yokohama, while the remaining 90 percent is held by

Yokohama China.

Yokohama Shanghai is a company established in Shanghai and its

principle business is in the sale of Yokohama tyres. The Company currently holds

49 percent of the issued and paid up share capital of Yokohama Shanghai, while the

remaining 51 percent is held by Yokohama China. Yokohama Shanghai has been

distributing Hang Zhou Yokohama's products since 2006.

YHI said, "In line with the Company's 5-year business expansion plan, the Divestment would

effectively open up opportunity for the Company to provide to its Chinese customers a

wider range of tyres and related products, especially from the Company's own stable of

products and further develops its sales network in the growing PRC market. Thus, the

Board is of the view that it is in the best interest of the Company to dispose of its interest

in the Tyre Companies. The Company will update its shareholders in respect of its

marketing initiatives in the PRC when appropriate."

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Stock Exchange announcement from YHI