Apollo Tyres fell 2.48% to Rs 64.90 at 11:26 IST on BSE after US-based Cooper Tire & Rubber Company said its shareholders approved its sale to Apollo Tyres.
Meanwhile, the BSE Sensex was up 66.18 points, or 0.34%, to 19,445.95.
On BSE, 4.66 lakh shares were traded in the counter compared with average volume of 7.43 lakh shares in the past one quarter.
The stock hit a high of Rs 67 and a low of Rs 61 so far during the day. The stock hit a 52-week high of Rs 101.50 on 8 May 2013. The stock hit a 52-week low of Rs 54.60 on 21 June 2013.
The stock had outperformed the market over the past one month till 30 September 2013, rising 5.72% compared with the Sensex's 4.08% rise. The scrip had also outperformed the market in past one quarter, gaining 17.79% as against Sensex's 0.08% decline.
The mid-cap company has an equity capital of Rs 50.40 crore. Face value per share is Re 1.
On Monday, 30 September 2013, Cooper Tire & Rubber Company (Cooper) announced that its stockholders voted to approve its pending merger with a wholly-owned subsidiary of Apollo Tyres with more than 74% of Cooper's outstanding common shares voted in favor of the transaction. When finalised, the pending merger will result in a strategic business combination that creates the seventh-largest tire company in the world.
Approximately 78% of Cooper's outstanding common shares were voted, with more than 48 million shares voted in favor of the merger, representing approximately 96% of Cooper's voted shares, Cooper said.
"We are pleased stockholders endorsed this compelling transaction, which will create a $6.6 billion leader in the tire industry with a strong global footprint that includes a presence in the world's largest tire market of North America as well as in the fastest growing geographies of India and China," said Cooper Chairman, Chief Executive Officer and President Roy Armes.
Cooper and Apollo announced the proposed merger on 12 June 2013 following unanimous approval by the boards of directors of both companies. The pending merger is expected to close by the end of this year, Cooper said in a statement.
Shares of Apollo Tyres are in downtrend ever since the company announced the deal on 12 June 2013, amid concerns that the large acquisition of US-based Cooper might impact the Indian company's balance sheet. The Apollo Tyres stock has slumped 29.46% from Rs 92 on 12 June 2013.
On 12 June 2013, Apollo Tyres announced that it would acquire Cooper, a company listed on the New York Stock Exchange, in an all-cash transaction valued at approximately $2.5 billion. This strategic combination will bring together two companies with highly complementary brands, geographic presence and technological expertise to create a global leader in tire manufacturing and distribution, Apollo Tyres said in a statement.
Cooper is the 11th largest tyre company in the world by revenue and it supplies premium and mid-tier tyres worldwide through renowned brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon. The combined company will be the seventh-largest tyre company in the world and will have a strong presence in high-growth end-markets across four continents, Apollo Tyres said. With a combined $6.6 billion in total sales in 2012, the combined company will have a comprehensive portfolio of signature brands and greater ability to cross-sell products in diverse countries with negligible overlap, Apollo Tyres said.
Apollo Tyres' consolidated net profit rose 19.5% to Rs 165.95 crore on 0.83% growth in total income to Rs 3200.94 crore in Q1 June 2013 over Q1 June 2012.
Apollo Tyres manufactures tyres and tubes for cars, trucks, farm equipment and light commercial vehicles. The company also manufactures automobile flaps and retreading materials.
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