TiAuto to list today

11 December, 2006 at 8:48 am | Posted in Companies | Leave a comment

Tiger Automotive (TiAuto) will list on the JSE’s specialty retailers sector today. TiAuto is the new holding company of the South African and UK wheel and tyre retail and wholesale operations formerly held by Tiger Wheels (TiWheel).
This follows the unbundling by TiWheel of its local tyre wholesale/retail and international alloy wheel making operations. TiAuto’s holdings include Tiger Wheel & Tyre, which has a network of 48 specialised and focused retail after-market wheel and tyre stores in South Africa and neighbouring countries. The authorised share capital of TiAuto comprises 200 million ordinary shares with a par value of 1c each, of which 59.6 million shares will be in issue and have been distributed to shareholders.

Eddie Keizan, TiWheel’s executive chairman and TiAuto’s non-executive chairman, said in July this year the planned unbundling should not come as a surprise as the manufacturing and retail/ wholesale operations had for some time been managed as two separate entities and had in effect become stand-alone businesses. He added that the previous supplier/customer relationship between the two operations was no longer relevant.

TiWheel said that the unbundling provided existing and potential shareholders in the group with a separate listed investment in an international automotive component manufacturing business with rand hedge attributes and a clearly defined, predominantly South African, consumer-driven business. “TiWheel believes that to list the two entities separately will unlock shareholder value and allow greater investor flexibility and thus benefit the shareholders who have supported the company, in both good and tough times, over the years,” the company said.

TiAuto believes it has the potential to double its number of owned and franchised retail stores in the medium term while also actively seeking to develop additional, synergistic dimensions to its South African business through mergers, acquisitions and greenfield projects. Plans were also in place to significantly grow TiAuto’s wholesale trading footprint in South Africa while in the UK it believed there was “reasonable potential” for it to benefit from its Japanese partner, Yokohama Rubber Company, to grow market share in the Europe. On Friday, TiWheel shares added 1.85 percent to R27.50. The automobiles and parts sector gained 0.56 percent.

(BusRep)

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