Apollo Tyres “Disappointed”; To seek legal remedy

Following US based Cooper Tire’s announcement made on December 30, 2013 that it was terminating its deal with Onkar Kanwar controlled Apollo Tyres, the Indian tyre major has said in a statement that it is “disappointed that Cooper had prematurely attempted to terminate the merger agreement”. The company also hinted at taking legal recourse to Cooper’s “detrimental conduct”.

A note signed by P N Wahal, Company Secretary, Apollo Tyres to the Mumbai Stock Exchange said, “While Cooper’s lack of control over its largest Chinese subsidiary, Cooper Chengshan Tire Company and inability to meet its legal and contractual financial reporting obligations has considerably complicated the situation. Apollo has made exhaustive efforts to find a sensible way forward over the last several months, however, Cooper has been unwilling to work constructively to complete a transaction that would have created value for both companies and their shareholders. Cooper’s actions leave Apollo no choice but to pursue legal remedies for Cooper’s detrimental conduct.”

The statement further noted, “Importantly, Apollo has made many other compelling growth opportunities around the world that we are continuing to pursue. Our business is performing well—as evidenced by the strong top and bottom line results we reported last quarter--- and we remain focussed on executing our standalone strategic plan to maximise value for Apollo’s shareholders. We are confident that Apollo is well positioned for continued success”.