Apollo Tyres has slipped 6% to Rs 62.70 after Cooper Tire and Rubber Company (CTB) shareholders approved the proposed merger with the company with more than 74% majority.
A positive response from the shareholders clears the path for Apollo Tyres to complete the merger process and expects to close the transaction by the end of the year.
On June 12 this year, Apollo Tyres had announced that it would acquire the US-based Cooper Tire & Rubber Company in an all—cash transaction valued approximately at Rs 14,500 crore ($2.5 billion).
Apollo had said that out of a total value of $2.5 billion to fund the acquisition, the Indian arm had taken a loan of only $450 million. The major portion of debt of $2.1 billion would be leveraged on cash flows of Cooper and Vredestein, the company’s Netherlands—based arm.
The stock opened at Rs 66.50 and touched low of Rs 60.70 on NSE. A combined 1.71 million shares change hands on the counter so far on the NSE and BSE.
A positive response from the shareholders clears the path for Apollo Tyres to complete the merger process and expects to close the transaction by the end of the year.
On June 12 this year, Apollo Tyres had announced that it would acquire the US-based Cooper Tire & Rubber Company in an all—cash transaction valued approximately at Rs 14,500 crore ($2.5 billion).
Apollo had said that out of a total value of $2.5 billion to fund the acquisition, the Indian arm had taken a loan of only $450 million. The major portion of debt of $2.1 billion would be leveraged on cash flows of Cooper and Vredestein, the company’s Netherlands—based arm.
The stock opened at Rs 66.50 and touched low of Rs 60.70 on NSE. A combined 1.71 million shares change hands on the counter so far on the NSE and BSE.
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