Michelin Acquires Multistrada

Michelin intends to buy out all shares of Multistrada Arah Sarana owned by other investors and make the Indonesian tire manufacturer its 100% subsidiary. All MASA securities will be delisted from the stock exchange.

Currently, Michelin owns 99.64% of Multistrada's shares, while the remaining 0.36% belongs to public investors. The company has made a tender offer to investors to buy out the securities for $18 million or $0.52 per share.

"This offer provides shareholders with an opportunity to gain significant returns on their investments in Multistrada," said the Indonesian company, which produces tires not only under its own brands Achilles and Corsa but also under Michelin's brands, such as BFGoodrich and Uniroyal.

Trading in Multistrada's shares on the exchange was halted on July 26, 2024, after the company announced its voluntary delisting. It is reported that the new measures will allow for the full integration of Multistrada into Michelin's global business, improve resource utilization efficiency, and enhance economies of scale.

Michelin acquired 87.59% of Multistrada's shares in 2019, increasing its stake in the company to 99.64%, and even then, there were plans to acquire all the remaining shares of the tire manufacturer.

As of 2019, Multistrada was capable of producing 11 million passenger car tires, 250,000 truck tires, and 9 million two-wheeler tires per year. According to ERJ, the company's turnover in 2023 was $489 million.