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Heavy duty tire (image credit: Michelin)

Michelin now controls  87.59% shares of Indonesia’s tire producer Multistrada  

JAKARTA ( – Tire producer Michelin Group said it has acquired a total of 87.59% shares of Indonesia’s tire producer PT Multistrada Arah Sarana Tbk (IDX:MASA) or 8.04 billion units of shares for Rp6.78 trillion or around US$476.77 million.

“On March 6, 2019, Michelin has acquired 8,042,922,431 units of MASA shares or 87.59% of the company’s enlarged capital. The acquisition was made based on the sales and purchase agreement signed on January 22,2019,” Michelin said in a published statement.

Michelin’s shareholding in Multisrada was higher after the company launched the tender offer to shares held by the public.  It appears that the additional shares were purchased from the public during the tender process.

In January, Michelin announced that it has acquired 7.346 billion units of Multistrada shares or 80% for US$439 million. The shares were purchased from key shareholders, namely businessman Pieter Tanuri and PT Central Sole Agency, which is also controlled by Pieter Tanuri.

The company was valued at USD700 million, representing 6.3 times of the company’s EBITDA per September 2018.

The valuation includes Multistrada’s 20% interest in retail company Penta and 50-hectares of land.

Michelin is a French company with an address of 23 Place des Carmes Dechaux, Fr-63040 Clermont-Ferrand Cedex 9, France. The company has no relation (non-affiliate) with the seller.

Multistrada has a capacity to produce 11 million units of car tires, 9 million of motorcycle tires and 250,000 units of truck tires per year. In 2017, the company posted sales of US$281 million.

The acquisition allows Michelin to strengthen its grip in the South East Asian market and Indonesia in particular.

In addition, through this transaction, Michelin will acquire 20% of PT Penta Artha Impressi (Penta) shares, a car distributor.

CEO of Michelin Jean-Dominique Senard said the acquisition of Multistrada shares enables Micheline to widen its operation and market in Indonesia.

Multistrada is one of the largest tire producers in Indonesia. It operates tire plant on 55 hectares and 128 hectares in East Cikarang, West Java, Indonesia. (*)

Written by Roffie Kurniawan (Email:


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