CLERMONT-FERRAND, France—Michelin has increased its ownership stake in Indonesian tire maker P.T. Multistrada Arah Sarana TBK to 99.64 percent, following a public offer for shares it didn't acquire earlier.
Michelin paid $480 million in the first quarter to acquire 87.59 percent ownership of Cikarang, Indonesia-based Multistrada, producer and marketer of the Achilles and Corsa tire brands, as well as a number of private brands.
At the same time, Michelin launched a public offer for the remaining outstanding shares at the same price per share as that offered for the shares already acquired.
The transaction enabled Michelin to acquire an additional 12.05 percent of the share capital, bringing its interest in Multistrada to 99.64 percent. The additional share purchase is valued at $65 million, bringing the total purchase price to $545 million for a company that generated $317 million in revenue in fiscal 2018.
The deal provides Michelin with annual capacity of more than 180,000 metric tons of production and strengthens its presence in the fast-growing Indonesian market. The deal includes a 20 percent stake in the Indonesian retailer P.T. Penta Artha Impressi and 123 acres of available land, according to Michelin.