Apollo Tyres Ltd, a manufacturer of automotive tubes, tires and rubber products, has entered into a definitive agreement to sell its Durban-based unit called Apollo Tyres South Africa Pty Ltd (ATSA) for $60 million (Rs 335 crore) to Sumitomo Rubber Industries Ltd, subject to regulatory and statutory approvals.
The assets being sold includes Ladysmith Tyre plant and Dunlop brand rights of Apollo Tyres, while the Durban plant will be retained by the holding company of ATSA which manufactures truck and bus radial tyres and
off-highway tyres used in the mining and construction industries. The transaction is expected to be completed in the next four months.
In January 2006, Apollo Tyres acquired Dunlop Tyres International Ltd (South Africa) for $64.4 million in all-cash deal. Post acquisition, it was renamed as Apollo Tyres South Africa Pty Ltd.
Shares of Apollo Tyres closed at Rs 90.30, up by 0.11 per cent on the BSE in a flat Mumbai market on Wednesday.
Apollo Tyres is one of the top two tyre makers in India along with MRF and had revenues of Rs 12,889 crore for FY13. It manufacturers truck/bus radial and off-the-road tires and is also into retreading and allied automotive services. The company has manufacturing presence in Asia, Europe and Africa and exports to over 118 countries.
In 2009, Apollo Tyres acquired Netherlands-based Vredestein Banden BV from Amtel Holdings Holland NV for $236.25 million. Post acquisition, the company got renamed as Apollo Vredestein BV Pvt Ltd.