The Hindu Business Line : Pref allotment completed — 2 Michelin nominees inducted onto Apollo Tyres' Board

The two directorial berths have been created consequent to the allotment of 57.13 lakh equity shares of ATL (14.9 per cent stake) on a preferential basis in favour of Compagnie Financiere Michelin, France.

The two nominees of Michelin on the ATL board are Mr Jean Marc Francois, President, Michelin-Asia Pacific and Mr Herve Richert, Vice-President, Business Development, Michelin-Asia Pacific.

With the induction of the two Michelin nominees at today's meeting, the size of the ATL Board has now expanded to 15 members

Mr Sunam Sarkar, Chief Strategy and Business Operations, ATL and now a member of ATL Board, told Business Line after today's board meeting that the Michelin preferential allotment deal has been fully completed. Michelin has now picked up a 14.9 per cent stake in ATL on a preferential allotment basis for a consideration of about Rs 135 crore (at Rs 235.65 per share). The equity share capital after the preferential allotment stands at Rs 38.3 crore.

When asked whether the ATL board took up for discussion any issues relating to the acquisition of the tyre manufacturing facility of Modi Rubber, Mr Sarkar replied in the negative. "The board met for a limited agenda and the issue of Modi Rubber was not part of the agenda," he said.

Meanwhile, the manufacturing facility of the joint venture company, Michelin Apollo Tyres Pvt Ltd, is likely to be located at Ranjangaon in Pune.

The joint venture company would manufacture truck and bus radial tyres. Commercial production at the facility is expected to commence by September 2005. To begin with, the plant is expected to have a capacity to roll out 3,50,000 truck and bus radial tyres per annum.

While Michelin will hold a 51 per cent stake in MATL, the balance 49 per cent will be held by ATL. The joint venture company will have a seven-member board, with four nominated by Michelin and three members nominated by ATL.

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