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. Last Updated: 07/27/2016

Tire Maker Amtel Accepts Sibur Takeover

Amtel-Vredestein, Russia's third-largest tire maker, said shareholders agreed to a bid from Sibur-Russian Tyres, leading to a reverse takeover.

Amtel's owners agreed to swap about 159 million new shares for all of Sibur-Russian Tyres, Amtel said Friday.

Amtel will also sell as many as 79.4 million ordinary shares in a private placement for at least $1.89 apiece to raise $150 million. Sibur will buy $50 million of that stock, giving it at least a 60.5 percent stake in Amtel, it said.

The agreement will bring about "the first reverse takeover of a London Stock Exchange main listed company by a Russian company," Sibur-Russian Tyres said in an e-mailed statement.

Sibur, Russia's biggest tire maker and part of Gazprom's Sibur Holding petrochemical unit, is benefiting from a burgeoning Russian car market expanding 20 percent a year, said Viktor Chizhov, an analyst at Rye Man & Gor Securities.

Sibur-Russian Tyres' "leading position in truck and agro tires segments will be complemented by Amtel's domination in passenger car and light truck tires," Sibur-Russian Tyres said.

Morgan Stanley advised Sibur, and Clifford Chance provided legal services. Alfa Bank and NM Rothschild & Sons advised Amtel and Freshfields Bruckhaus Deringer provided legal advice.

Sibur Holding also agreed to set up a joint venture with Salavatnefteorgsintez, a Russian refinery acquired by Gazprom in May, to produce and market ethylene, propylene and other petrochemicals, the companies said Friday.