SINGAPORE (Sept. 22, 2010)—Sumitomo Rubber Industries Ltd. will buy a 1.8-percent stake in Stamford Tyres Corp. Ltd., southeast Asia's largest independent tire and wheel distributor, subject to the approval of the Singapore Stock Exchange.
The transaction follows Stamford's foray into South Africa last year. Sumitomo appointed Stamford its distributor of record for the Falken brand in February 2009.
Stamford Tyres will issue 4.3 million new shares to Sumitomo at a price of 35 cents per share.