By Denna Bowman
Russian-Dutch tyres manufacture Amtel-Vredestein has been declared bankrupt by a court in the Netherlands.
However, its Netherlands-based subsidiary, Vredestein Banden, was saved from the same fate after it was bought out by Apollo Tyres, the second largest tyre producer in India.
No details of price or further conditions have yet been released, however, according to an official statement on the matter, the parties will only be in a position to disclose this after “certain conditions have been met and certain approvals, including regulatory and statutory approvals are granted, wherever required.”
Rob Oudshorm, CEO of Vredestein Baden, told Dutch newspaper, De Twentchse Courant Tubantia: “We are relieved and happy…We have had good connections with Indian market leader Apollo for 15 years.”
Amtel-Vredestein have now released full-year 2008 financial results that chronicle the company’s continued decline from its poor full-year 2007 results.
Full-year 2008 net losses almost doubled to US$446 million, compared with $242 million. The losses came despite relatively stable annual revenue of $881 million compared with $886 million in 2007.
The financial report also sheds a little more light on the timing of Apollo’s offer for Vredestein Banden.
According to the company literature, the group received a “binding offer” to acquire 100 per cent of the issued share capital from Apollo in February 2009, two months before the news that such an offer became public.
By this stage the offer had long been accepted by the company’s supervisory board, a decision that was made at some point in March.