Jakarta. Michelin has announced a tender offer for public shares in tire producer Multistrada Arah Sarana (MASA) as part of the company's plan to delist and transition to a private entity. The move follows approval from the extraordinary general shareholders meeting (RUPSLB) held on Dec. 18, 2024.

According to Multistrada's management, Michelin is prepared to purchase up to 33.18 million shares, representing 0.36 percent of the company’s total issued and paid-up capital. The tender offer is priced at Rp 8,400 ($0.52) per share, with an aggregate transaction value of up to Rp 278.71 billion ($17.88 million).

"Michelin has sufficient funds to fully execute the tender offer," the company stated in its tender offer document as quoted on Wednesday.

Currently, Michelin holds 99.64 percent of Multistrada's shares, equivalent to 9.15 billion shares. The remaining 0.36 percent of shares are held by 646 public investors, a relatively small portion of the company's capital. These public shares are not actively traded and are considered illiquid.

“This tender offer provides public shareholders an opportunity to achieve an attractive return on their investment in Multistrada,” the management stated.

The effective date for the tender offer is Jan. 10, 2025. The tender period will run from Jan. 14 to Feb. 13, 2025, with payment scheduled for Feb. 28, 2025.

Trading in Multistrada shares has been suspended since July 26, 2024, following the company’s announcement of its voluntary delisting plan. The stock last traded at Rp 6,200 per share.

Multistrada, a member of the Michelin Group, operates in the highly competitive global tire business. According to the company, the transition to private status is part of Michelin’s strategy to achieve greater operational integration across its global network, allowing shared resources and improved economies of scale.

The change is expected to enhance the company’s agility in responding to market dynamics in the global tire industry. “Becoming a private company provides the flexibility needed to achieve this integration and respond quickly to changes in the global tire market,” Multistrada's management explained.

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