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China's Securities Regulator To Halt Review Of Aeolus Tyre's Asset Restructuring Plan

Aeolus Tyre Co., Ltd. recently announced  that the company has decided to withdraw its restructure files from Chinese Securities Regulatory Commission.

In that case, Pirelli Tyre could not be injected into Aeolus Tyre Co., Ltd. as scheduled.

Aeolus Tyre signed an asset injection agreement with TP Industrial Holding S.p.A.、High Grade(HK)Investment Management Limited、ChemChina and Qingdao Yellow Sea Rubber Group.

The agreement said Aeolus Tyre planned to issue shares to finance capitals to buy 52% of stake in Prometeon Tyre Group S.r.l. and 38% of stake in High Grade(HK)Investment Management Limited.

However, China's Ministry of Commerce and National Development and Reform Commission failed to grant approval for the overseas acquisition before the Dec. 31 deadline.

The relevant parties were unable to reach a consensus on an extension, Aeolus said, so the deal was terminated.

Aeolus is owned by China National Chemical Corp. (ChemChina).Despite the obstacle, Marco Polo International Italy S.p.A.'s TP Industrial Holding said in a news release it was planning to pursue, in the commercial and technological areas, the integration of Prometeon Tyre Group.

Prometeon, which represents the commercial tire assets that were separated from Pirelli last year, said it will continue its integration "in an appropriate time frame in accordance with the laws and regulations."Besides TP Industrial's 52-percent shareholding, Prometeon's other shareholders are Cinda International Holding (CINDA)—a Chinese investment fund—with 38 percent and Aeolus with 10 percent.

Prometeon said it will continue to grow its business and "commercial presence with its new go-to-market approach and commercial organization."The planned deal, priced at $275 million, also included a 70-percent stake in Guilin Beili Tire, another ChemChina subsidiary.