Michelin to fully acquire Indonesian tire maker Multistrada

Jakarta – Michelin Group has earmarked €17 million to fully acquire Indonesian tire maker Multistrada, the companies announced 24 Dec 2024.

The group has allocated IDR278.71 billion (€16.5 million) to acquire shares in Multistrada, representing 0.36% of the total stake in the company.

The tender offer price set at IDR8,400/share represents a premium of 41% higher than the average trading price, according to the tender offer document.

The offer will become effective on 10 Jan for a period of 90 days, with a payment date scheduled for 18 Feb, the French group added.

The outstanding shares are currently held by independent shareholders, and according to Multistrada are not “actively traded in... and are relatively not liquid.”

Michelin's investment is part of the Indonesian tire maker’s ‘go private’ initiative, intended to enhance competitiveness through becoming a wholly owned subsidiary.

Key to Michelin group’s business strategies "is to create an internal integration to allow the sharing of resources amongst various parts of its worldwide operation,” it stated. 

The integration will also enable the company to “react quickly and respond to various changes in the global tire market,” Multistrada added.

Once the transaction is completed, Multistrada will change its status to a “private company”, giving it more flexibility to integrate further into Michelin.

Michelin increased its stake in Multistrada in 2019 by 80% to hold a 99.64% share in the company.

In 2023, the Indonesian tire maker generated sales of $489 million (€474 million), and earnings of $75 million.