Sibur Russian Tyres prepares for Amtel takeover

by David Shaw, ERJ staff

Moscow -- Sibur Russian Tyres has confirmed that it is still aiming to buy the whole of Amtel-Vredestein's operations. In a written statement, Igor Karavaev of SRT said, "We plan to buy the debts of Amtel-Vredestein's Russian arm in exchange for Sibur Holding's interest-bearing bonds worth up to RUB 2.7bn (approx. USD 81.8m) and SIBUR-Russian Tyres's convertible zero-coupon bonds worth up to RUB 12.692bn (approx. USD 385m). Consequently, the total price of the bonds may reach up to RUB 15.4bn (approx. USD 467m)."

This, he said, would cover all the Russian debt expect for portions held by Commerzbank AG. Separately, the Dutch subsidiary, Vredestein Banded has its own debt arrangements. The financial operation would allow the banks to take up 45 percent of the equity in SRT, he noted.

Karavaev said he aims to buy the whole company and commented, "The agreements with all the banks are nearing conclusion" He said the deal could complete as early as next month. If it goes through, SRT would take immediate control of A-V's entire operation.