News from tyre manufacturers and distributors - Michelin increases its capital to 1.2 billion Euros

Michelin increases its capital to 1.2 billion Euros

Business Published the 20/10/2010

Michelin has announced a significant financial operation aimed at funding its development.

Michelin man with a laptop Copyright © : Michelin

In order to do so, the company is launching a rights issue amounting to 1.2 billion Euros. The subscription price for the new shares has been set at 45 Euros per share (nominal value of €2 and €43 issue premium).

The subscription period will run from 30th September to 13th October, with priority given to existing Michelin shareholders.

The aim of the operation is to shore up the group's credit rating and its ability to access finance markets. More generally, the objective is to strengthen Michelin's financial flexibility.

During 2011, Michelin is planning to invest 1.6 billion Euros, compared to 1 billion Euros in 2010, with the aim of increasing its volume of sales. Michelin is banking on growth in sales of 25% by 2015, and  50% by 2020.

This growth should arise mainly from stronger growth in emerging countries, and the need for tyres that better meet the challenges of sustainable development.