Trelleborg ordered to pay fine for disclosure failures on TWS sale to Yokohama

STOCKHOLM, Sweden—Nasdaq Stockholm has ordered Trelleborg A.B. to pay a fine of four annual fees, equivalent to more than $910,900, for failing to disclose information regarding the sale of its Trelleborg Wheel Systems business in a timely manner.

The exchange's disciplinary committee found that the group should have acted more swiftly in disclosing information about the sale to Yokohama Rubber Co. Ltd. during the Christmas weekend in December 2021, according to Trelleborg statement.

The fines, Trelleborg said, are "a result of the company's information disclosure procedures in connection with rumors involving the divestment" of TWS last year.

In December 2021, Trelleborg had rebuffed a report that it was considering a bid from Yokohama on the TWS unit. The company, in a written comment to European Rubber Journal, said, "we never comment on unsubstantiated and speculative rumors," adding that it was "very committed" to its tire unit.

Three months following this "unsubstantiated" rumor, Trelleborg said it would sell its TWS unit to Yokohama in a $2.3 billion deal.

Trelleborg argued, however, that it had handled the matter correctly, noting that "only early discussions with external partners were taking place in December 2021."

These discussions, according to the Swedish group, "were not sufficiently precise to inform the market."

In 2021, Trelleborg reported net sales of about $3.93 billion with an EBIT of about $605 million.

Rubber News staff contributed to this report.