In the deal, Sibur Holding, part of the powerful OAO Gazprom’s Gazprombank Group, will acquire controlling interest in A-V after selling its Sibur-Russian Tyres unit to A-V in a stock deal. Under terms of the agreement, A-V will ‘buy’ Sibur-Russian Tyres for some 160 million shares of stock. Sibur Holding, in turn, will acquire the newly joined tire company for $50 million in stock purchases and an additional $150 million though placement of other shares.
After all is said and done, Sibur Holding will own a 70% stake in the new company.
Over the past year, A-V has suffered from serious debt troubles related to its massive acquisition and growth strategy in which it bought out the now sold Moscow Tyre Plant and dozens of retail stores across Russia.
Sibur-Russian Tyres will provide the combined tire company – as yet unnamed – with $40 million in interim funding. (Tire Review/Akron)
