Titan International, Inc. Announces Receipt of Additional Settlement Put Option Notice
Jan 15, 2019, 06:45 ET
QUINCY, Ill., Jan. 15, 2019 /PRNewswire/ -- Titan International, Inc. (the "Company" or "Titan") announced today that notice was received from OEP 11 COÖPERATIEF U.A. ("OEP"), an affiliate of One Equity Partners, one of the three shareholders of Voltyre-Prom, of its exercise, effective January 8, 2019, of the settlement put option with respect to its holdings in Voltyre-Prom, pursuant to the Voltyre-Prom Shareholders' Agreement.
The Company, together with OEP and the Russian Direct Investment Fund ("RDIF"), owns all of the equity interests in Voltyre-Prom, a leading producer of agricultural and industrial tires, which owns and operates an over two million square foot manufacturing facility located in Volgograd, Russia. The OEP settlement put option may be satisfied by Titan with cash or Titan common stock, in amounts set by the Shareholders' Agreement. Depending on the final settlement date, the cash amount is estimated to be in the range of approximately $45.0 million to $46.2 million and the share amount range is estimated to be approximately 7.3 million shares to 7.5 million shares.
"Consistent with the approach with respect to RDIF's exercise of the settlement put option, Titan's Board of Directors, together with its financial advisors, is working towards adopting a course of action with respect to OEP's put option exercise that will be in the best interests of our shareholders," stated Paul Reitz, President and Chief Executive Officer. "The closing of the put option is required to occur within 60 days of the notice of the put option exercise from OEP, or when all necessary regulatory approvals are obtained, if later."
As previously disclosed, RDIF exercised its put option under the Shareholders' Agreement, effective November 14, 2018, and the Company and RDIF have since entered into a non-binding letter of intent with respect to such exercise by RDIF.
About Titan:
Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. Headquartered in Quincy, Illinois, the Company globally produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction, and consumer markets. For more information, visit www.titan-intl.com.
SOURCE Titan International, Inc.
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