According to a statement released by the company on January 31, it has entered into preliminary discussions with Sibur Holding Joint-Stock Company regarding what it calls a possible “business combination” with its Sibur-Russian Tyres subsidiary. This news came just two days after A-V reported difficulties re-financing its short term debt, and an article published in Russia’s Kommersant news says that the company has requested “short term financing” from Sibur, although the amount of such a loan and how it would be used was not specified. A-V is apparently also seeking from Sibur a supply of synthetic rubber for its facilities in Russia,
The result of a merger, says A-V, is that Sibur may become one of the principal shareholders in the combined business through the issue of new equity. However the A-V statement adds that there has been, under the structure currently being discussed, no expressed intention on the part of Sibur or any of the parties involved to submit an offer to acquire existing A-V N.V. share capital.
Preliminary talks are said to have been ongoing for some time, although the official blessing from the A-V supervisory board was only given in the final week of January. The companies will now begin making mutual assessment, a process that should draw to completion by May. The discussions are at a preliminary stage and A-V adds it is still uncertain whether the proposed merger will come to fruition. Further announcements, says the manufacturer, will be made “as and when appropriate.” (Tyres & Accessories/Staffordshire, U.K.)
