AKRON, Ohio (AP) — Tire maker Goodyear Tire & Rubber Co. on Tuesday said it will increase its stake in TC Debica, a Polish contract tire maker for Goodyear, under an agreement with PZU, a Polish asset-management company and TC Debica shareholders.
Goodyear will increase its stake up to about 66 percent through a tender offer for 6.12 percent of all outstanding shares of the company.
The price is 120 Polish Zloty ($50.39) per share. Currently, Goodyear owns 59.9 percent of TC Debica's shares.
TC Debica will remain listed on the Warsaw Stock Exchange. Goodyear's tender investment is worth about $40 million to $45 million.
Goodyear is also asking the company to nearly triple its commercial tire production for Goodyear, to 5,000 tires per day from 1,700.
TC Debica's management board will decide whether to expand production in Poland. Goodyear said the expansion would require an investment of more than $200 million and likely involve assistance form Polish national and regional authorities.
An expansion would create 350 to 400 new jobs at TC Debica.
The agreement depends on TC Debica obtaining appropriate tax incentives under Debica's Special Eonomic Zone.
Under further terms of the tender offer, Goodyear will use ''reasonable best efforts'' over the next 18 months to announce a tender for the remaining shares of the company.
Previously, PZU had called for a meeting to address concerns expressed by minority shareholders, but with the tender offer, PZU withdrew the request.
