Goodyear buys Ansell out of SP Tyre joint venture

Akron, Ohio -- The Goodyear Tire & Rubber Company said it has reached agreement in principle on the final terms to acquire Ansell Limited's interest in their South Pacific Tyres (SPT) joint ventures, pending government and other approvals.

Goodyear will pay its partner approximately $40 million for its 50 percent ownership of the tyre manufacturer and marketer with operations in Australia and New Zealand. Goodyear will also repay approximately $50 million of outstanding loans from Ansell to SPT. Ansell therefore makes a cash gain of $90 million (Euro 75 million) from the deal.

Ansell will use most of the cash to buy back some of its own shares to the value of A$100 million (Euro 63 million). Ansell's accounts show that it values the SPT stake slightly higher than $40 million, and the sale will result in a writedown of around Euro 3.5 million.

The credit Agency, Standard & Poor's said, "The exit from the SPT joint venture, a legacy from the Pacific Dunlop era, is viewed as positive because it allows Ansell to focus on its core health-care business units. The use of the majority of the sale proceeds and loan repayment in a share buyback, however, means that the outcome is credit neutral for Ansell

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Press releasefrom Goodyear

Press releasefrom Standard & Poor

Australia's Ansell exits South Pacific Tyre JV with Goodyear Forbes (Australia)

Ansell in $100m buy-back Courier Mail (Australia)