Titan increases its stake in Titan Europe in share/debt shufle

Quincy, Illinois - Through a subsidiary, Titan International Inc. gained back some of its stake in Titan Europe Plc for £4,057 million (€6.03 million). The shares were sold back to the parent in exchange for Titan Europe's entire long-term debt owed to the parent company.

Titan Luxembourg SARL, a wholly owned subsidiary of Quincy-based Titan, bought more than 1.8 million shares of Titan Europe at a price of £2.215 each. The re-purchase coincided with repayment of a loan of the same value from Titan Europe to Titan Inc. The deal puts parent Titan´s interest in the European company at 17.3 percent, up from 15.4 percent.

Titan International spun off the European company, previously a wholly owned division, in April 2004. Initially Titan retained a 30-percent stake in the unit, but a spokeswoman said Titan Europe issued more shares last year, diluting Titan International´s stake to 15.4 percent.

"Titan was pleased with this opportunity, given that the long-term outlook for Titan Europe Plc looks very promising," said Titan chairman and CEO Maurice Taylor Jr.

In a separate announcement, Titan issued a winter bonus to its employees. The firm disbursed an average of $1000 to its employees, including $200 in $2 bills.

"Titan´s employees have done an excellent job, and as a team we will continue to excel," Taylor said.

From Rubber & Plastics News (A Crain publication)

Press release from Titan Europe