QUINCY, Ill. (Sept. 17, 2012)—Titan International Inc. has confirmed its earlier proposed offer to buy Titan Europe P.L.C—one share of Titan International stock for 11 shares of Titan Europe stock—and is proposing issuing up to 6.24 million new shares to cover the offer, according to a prospectus filed by the Quincy-based tire and wheel company.
The offer values the deal at about $168 million and represents a premium of about 15 percent over the closing price of Titan Europe's shares Sept. 13, Titan International said. Each Titan Europe share would be worth $1.81, Titan International said.
Titan Europe shareholders have until 1 p.m. London time Oct. 5 to accept the offer, according to the prospectus.
Titan International's bid covers the 78.3 percent of Titan Europe's stock it doesn't already own. Titan International, through its Titan Luxembourg S.a.r.l. subsidiary, owns a 21.7-percent share in Titan Europe, according to Titan Europe, which started life as a Titan International subsidiary before being spun off in 2004.
Titan International earlier said the proposed acquisition presents opportunities for its tire business in South America and Europe and will cement the existing cooperation between Titan International Mining Services—established in 2011 to offer complete tire, wheel and track services near large mines worldwide—and Titan Europe's own Mining Service Centres expertise.
Titan Europe generated $679 million in sales in fiscal 2011, split 37/63 between wheels and undercarriages. The business is largely OE-oriented with customers in the agricultural, construction, industrial and mining industries.