Apollo Tyres had entered South Africa in 2006 with the acquisition of Dunlop Tires International for Rs 290 crore in an all-cash deal. However, it hasn't been able to make the best out of the business there.
Apollo Tyres is undertaking a an exercise to 'rescue' operations of its South African arm in the wake of uncompetitive cost structure, continuous labour unrest and related issues.
The company has roped in a specialist to re-structure its operations there.
"Apollo Tyres Africa (Pty) Ltd has voluntarily initiated the Business Rescue proceedings, and has appointed a specialist to re-structure its operations and to secure the best value for all stakeholders," a company spokesperson said in a statement.
The evaluation by the independent Business Rescue Practitioner will decide the future course of action for the company in South Africa, the statement added.
"This move by the company, has been prompted by the uncompetitive cost structure in the South African market, along with the continuous labour unrest and related issues," the statement said.
Apollo Tyres had entered South Africa in 2006 with the acquisition of Dunlop Tires International for Rs 290 crore in an all-cash deal. However, it hasn't been able to make the best out of the business there.
In December last year, the company closed transaction to sell its South African business along with a passenger car tyre plant to Sumitomo Rubber Industries in a deal valued at USD 60 million.
The sale included Apollo Tyres South Africa (ATSA), including the Ladysmith passenger car tyre plant, and the Dunlop brand rights that Apollo had in 32 countries of Africa.
Apollo retained the Durban plant which manufactures Truck & Bus Radial (TBR) tyres and Off Highway tyres (OHT) used in the mining and construction industries.
Post the transaction, Apollo Tyres continued to sell Apollo, Vredestein and Regal branded tyres in Africa, and focussed on creating and strengthening its sales and distribution network across the continent.
Apollo Tyres stock price
On September 16, 2014, Apollo Tyres closed at Rs 195.60, down Rs 14.1, or 6.72 percent. The 52-week high of the share was Rs 217.70 and the 52-week low was Rs 61.00.
The company's trailing 12-month (TTM) EPS was at Rs 9.59 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 20.4. The latest book value of the company is Rs 53.62 per share. At current value, the price-to-book value of the company is 3.65.
Anda sedang membaca artikel tentang
Apollo Tyres starts business rescue proceedings in S Africa
Dengan url
http://gayafashionshow.blogspot.com/2014/09/apollo-tyres-starts-business-rescue.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Apollo Tyres starts business rescue proceedings in S Africa
namun jangan lupa untuk meletakkan link
Apollo Tyres starts business rescue proceedings in S Africa
sebagai sumbernya
0 komentar:
Posting Komentar