On Monday, tire and wheel supplier Titan International (NYSE:TWI) announced that in compliance with Indian law, it is required to make -- and is making -- an offer to purchase 14% of the shares outstanding of auto parts manufacturer Wheels of India.
Titan already owns 37% of the company's shares, triggering a provision of Indian law that requires it to make an offer for all shares not owned by the family that runs the company -- which amount to 14% of shares outstanding.
Titan did not disclose further details on its purchase offer, saying only that the price to be paid is "immaterial" to its business. But according to Hindu Business Line, Titan will be paying at least 752.81 rupees ($13.98) per outstanding share. This implies a $138 million market cap for the entire company, roughly equal to Wheels of India's current market cap, and suggesting Titan is paying little or no premium for the additional shares.
Titan's own shares, accordingly, finished up 1.4% today.