Sumitomo Rubber Industries plans to buy a 1.8% stake in Singapore-based tire and wheel distributor Stamford Tyres Corp.
To complete the deal, Stamford Tyres will issue to Sumitomo 4.3 million new shares at a price of 26-cents per share. The net proceeds, Stamford Tyre said, will fund working capital needs in South Africa.
Stamford Tyres has been distributing SRI’s Falken brand tires since 1975, and now accounts for 39% of Stamford’s business. Stamford also offers a number of other brands, as well as its Sumo private label lines.