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Apollo Tyres has gained nearly 3% at Rs 201 after the company said that it is undertaking an exercise to rescue operations of its South African arm.
The company announced that Apollo Tyres Africa Proprietary, a wholly-owned step subsidiary of the company in South Africa, has voluntarily initiated business rescue proceedings. It has appointed a specialist to re-structure its operations and to secure best value for all stakeholders. The evaluation by such specialist will decide the future course of action for the company in South Africa, the company said in a statement.
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, according to media reports, it has not been able to make the best out of the business there in the wake of uncompetitive cost structure, continuous labour unrest and related issues.
On BSE, so far 2 lakh shares were traded in the counter, compared with an average volume of 6 lakh shares in the past one quarter. The stock hit a high of Rs 203.65 and a low of Rs 198 so far during the day.
