Aug 25, 2011

MASA sale drops as unexpected price

Two controlling shareholders of tire maker PT Multistrada Arah Sarana Tbk (MASA), PVP XVIII Pte Ltd and Salim affiliated company PT  Central Sole Agency have dropped the sale of 38.7% stake as the final price was below expectation.
A source close to the deal said three potential buyers, Hankook Tire Company, Texas Pacific Group, and Yokohama Tire Corp, submitted the final offer at Rp500 per share, while the sellers expected above Rp800 per share.
In an official statement submitted to Indonesia Stock Exchange (IDX) yesterday, Director Y. Ade Bunian Moniaga said PVP and Central Agency don't have any intention to sell their stakes in Multistrada. They are both committed to keep their existing shares in the maker of Achilles, Strada, and Corsa tires.

Disclosure: No position at the stock mentioned above.

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