Apollo buyback proposal approved

ERJ staff report (RD)

Gurgaon, India - Apollo Tyres board of directors has approved the company's proposal for a buyback of equity shares, the company said 19 March.

In reference to key decisions made by the board, Apollo said approval for an amount not exceeding Rs 1220 million (Euro 17.6 million) for the buyback programme constitutes around 10 percent of the paid up capital and free reserves of the company, as of 31 March 2008.

The company said the buyback will be for a minimum of 67 00 000 equity shares with a maximum buyback price of Rs 25 per share, on a facevalue of Rs 1.

“This is an opportunity for us to enhance value for our shareholders,” said Onkar S Kanwar, chairman and managing director, Apollo Tyres. “In the present day context, we feel that prevailing share quotes are under priced and do not reflect the true value of the company or the inherent strengths of Apollo Tyres, both for the short and the long term.”

Following regulatory approvals, the process will be completed within 12 months, the company said.

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Press release from Apollo Tyres Ltd