Kolkata, Dec 02: Apollo Tyres Ltd (ATL) has convened an extraordinary general meeting to seek shareholders' approval for a technical alliance with Michelin Group of France to manufacture dual-branded radial truck and bus tyres. The EGM would be held on December 15 at Kochi to seek approval to allot 57,12,500 equity shares comprising 14.90 per cent of ATL's total equity to Michelin Group's investing arm, Campagnie Financiere Michelin, at a price of Rs 134.82 crore through a preferential issue, a company official said.
After the proposed allotment of shares to Michelin, the stake in ATL held by promoters and business associates would come down to 37.33 per cent from 43.87 per cent.
The shareholding of FIs, MFs, banks and Government of Kerala would come down to 19.58 per cent from 23.01 per cent while that of the public and others would come down to 28.19 per cent from 33.12 per cent.

As per the arrangement, Michelin will enter into a technical alliance for the manufacture of passenger car radials by ATL and a new joint venture company would be floated to import, manufacture, sell and market truck and bus raidals with the dual brand of 'Michelin' and 'Apollo', he said.
The official said two directors on behalf of Michelin would be inducted on the board of atl and in the new company; Michelin will have four nominees against Apollo's three.
Bureau Report