Apollo Tyres has moved up 1.6% at Rs 91.80 after announcing its plans to sell its South African business along with a passenger car tyre plant to Sumitomo Rubber Industries in a deal valued $60 million (about Rs 340 crore).
The company would, however, retain the Durban plant which manufactures truck and bus radial (TBR) tyres and off highway tyres (OHT) used in the mining and construction industries, Apollo Tyres said in a statement. Apollo Tryes had acquired South Africa headquartered Dunlop Tyres International in 2006 for Rs 290 crore in an all cash deal and later renamed it to ATSA.
Post the deal, Apollo Tyres would continue to sell Apollo, Vredestein and Regal brand tyres in Africa while focusing on creating and strengthening its own sales and distribution network across the continent, it said.
The stock opened at Rs 91.25 and touched a high of Rs 91.90. Around 31,000 shares have been traded so far on the BSE, as against a two week average of 1,56,000 shares.