Titan Europe Share Discussion Threads

[insails] 07/8/2012 17:45

I notice TI share price has climbed to $21.93 from $21.17, effectively increasing the indicative offer by 3.5% ex a small negative currency adjustment.

So that negates my previous post.
I now calculate the 1 for 11 share swap as worth 127.44p

[insails] 07/8/2012 15:53

124p Bid price just tipped the 123.9p indicative TI offer.

Henderson Global now hold 5.13% not the 4.4% on the TE website.

[smicker] 07/8/2012 13:55

For info, Mefro have bought another 60k, holding still at 26.9%

[smicker] 06/8/2012 16:59

It would'nt make sense to do this to build a stake in Titan International as that could be done directly so its obviously linked to Titan Europe. The amount of shares being purchased are not going to aggregate into enough to block anything Titan International might want to do so Mefro must have its own internal reason for buying them. The most obvious is that its going to make an offer at a higher value and wants to buy in as many shares as possible to reduce the total it will have to offer but it doesnt want to chase the price up to a point where the value of the bid will be affected.

Meant to also say that it makes sense to wait as long as possible to reveal their intentions so they can hoover up as many shares as possible. Only a serious price rise is liable to see them act any sooner

[insails] 06/8/2012 16:24

Tageshändler = daytraders.

[kimboy2] 06/8/2012 16:14

The question is why.

[smicker] 06/8/2012 13:22

Mefro are still buying at 1.21. Up to 26.9

[strollingmolby] 03/8/2012 13:47

A few more for Mefro since yesterday's announcement (circa 80k):

23,364,127 - 26.7%

[smicker] 03/8/2012 10:57

For information,
The london stock exchange website allows the user to set up alerts for specific stocks. This picks up the DGAP disclosures where Mefro purchases are detailed

[and1] 03/8/2012 07:30

I see that Mefro has 100% stake in all their subsidiaries except TSW where they have a 26% stake.

Just an out of the box thought, Can this low offer for TSW be a ploy by TWI to force Mefro's hand to buy the remainder of TSW?

Mefros reaction should be (and is) to buy as many shares as possible at this low market price either to increase the chances of blocking the bid or to get shares cheap prior to a bid. I would have expected them to be more aggressive buyers though?

[alphahunter] 02/8/2012 18:10

08/02/2012 | 10:05am US/Eastern

Titan International, Inc. (NYSE: TWI) has closed on the purchase of Planet Corporation Group based in Perth, Australia ("Planet"). Titan acquired 56 percent of the Corporation for $22.9 million USD and paid-off their outstanding credit facilities of $10.5 million USD at closing. Planet generated over $75 million USD in sales in the past 12 months and approximately $10 million USD of EBITDA in 2011. Planet includes National Tyres, Acme Wheel and Resource Tyre & Choice Tyre Wholesalers.

Planet is an OTR tire and wheel specialist that manufactures, distributes and services products to customers in the mining, agriculture, construction and earthmoving industries. Planet will be a subsidiary of Titan Mining Services, which was formed recently to build Titan's mining business around the globe. This transaction demonstrates Titan's initiative to grow the OTR tire and wheel business around the globe.

Titan International, Inc., a holding company, owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all terrain vehicles) applications. For more information, visit www.titan-intl.com.



So if I understand it right, TWI pays CASH - YES CASH $10.5m + $22.9m for 56% of the Planet, equivalent to $60m for 100% of the business.
That's 6x EBITDA, 0.8X REVENUES for a business that generated 13.5% EBITDA margins in 2011.
TSW currently trades on 2.2x EBITDA, 0.2X REVENUES and generated 10% EBITDA margins.

Unfortunately, we don't have more info on Planet's debt level but I doubt very strongly that valuations based on EV would change the conclusion that TWI's share offer grossly undervalues TSW's value.

[kimboy2] 02/8/2012 17:43

One other thing that has struck me is that there appears to be little communication, and presumably cooperation between TSW and Mefro.

In fact I thought that the lack of curiousity was rather marked. The Mefro holding was described as 'strategic' but there was not much interest in what that strategy was.

I got the feeling that Mefro were an unwanted gatecrasher at someone else's party.

Long may it continue and in the end may be a better guarantee of a worthwhile outcome than a new non exec.

[kimboy2] 02/8/2012 16:19

The BoD are certainly going to resist any independent non exec being parachuted in.

I also believe that they are considerably more favourably disposed to TWI than any counter offer that may, or may not, arrive.

I get the impression that they do not view the status quo as an option, for reasons that didn't really stack up IMV.

The best route IMV is direct lobbying of the 'independent board' rather than appointing a non exec.

Perhaps Sharesoc representation of smaller shareholders would be an optimal route.

[smicker] 02/8/2012 15:09

Kimboy2 ,

Mefro have bought more up to 1.21 and they now hold 26.6%. I dont know why it doesnt appear as an RNS

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11286715.


Tiswas, hopefully the stakebuilding by Mefro will ensure a more transparent result

[tiswas] 02/8/2012 12:46

smicker

Yes they called me but we just agreed to disagree about the true independence of the nominated committee.

All options are under review as they were caught out by the Telegraph story so not in the position they would like to be in. I asked specifically about appointing temp independent non-execs to arbitrate but they thought there were some issues in finding someone suitable and making a short term appointment in the timescales available.

Obviously he would not comment on price, valuation etc but I made it clear that I was not happy with the offer on the table.

So nothing earth shattering to report I am afraid. Just got to wait and see what happens next.

[kimboy2] 02/8/2012 11:37

I don't think that they would need much to meet TWI's offer.

The offer is £107m and they hold 26.2% which means they need to find £79m.

There is £40m cash and Wheels India may be worth another £30m.

That doesn't leave a lot to actually rake up to match TWI

[alphahunter] 02/8/2012 11:16

Mefro is probably busy disgesting Kamaz' wheel business which they disposed of two years ago. Kamaz is a Russian truck/tractor biz in which Daimler's got 15%.

[insails] 02/8/2012 09:39

2012.pdfhttp://www.mefro-wheels.com/english/company/facts-figures.html

http://www.mefro-wheels.com/fileadmin/img/unternehmen/mefro_Konzern_06

[insails] 02/8/2012 09:33

Mefro Accounts I assume are private, but from their website information:-
2011 Turnover of 450mEuros.

Every year 18 million wheels for light vehicles, about 3.1 million wheels for trucks and truck-trailers, 1.1 million wheels for car-trailers and caravans, and 800,000 wheels for tractors, construction and agricultural machines are produced in our factories. In 2008, we had 2,465 employees, and the consolidated annual turnover of our holding was about €500 millions.

[and1] 02/8/2012 08:41

Mefro cant lose by offering say 140-150p a share for TSW. Either they get a company on the cheap or they force TSI into a higher bid.

I cant get any stats on Mefro wheels Gmbh, how big are they?

[kimboy2] 02/8/2012 00:02

While I am wittering on;

Value of the bid is about £107m.

Value of wheels £30m

Cash on b/s £40m

That means they will in effect be paying £37m for a company producing a PBT of something over £20m, even with a profit warning.

That it not including the profit made in H1/12 which will be about £10m after tax.

IMV unless there is another bid the 'independent directors' will recommend the TWI offer.

[smicker] 01/8/2012 23:19

Tiswas,
Did they get back to you?