Modi Rubber divests entire shareholding in its subsidiary - Modi Tyres Company

Modi Rubber has completed the sale of its entire shareholding in its subsidiary Modi Tyres Company to the Continental Group, represented by 56,046,680 equity shares on July 15, 2011 for a share purchase consideration of approximately Rs 117.61 crore and a non compete fee net of withholding tax in the sum of Rs 17.22 crore.

Consequent to the said sale, the company's subsidiary, Modi Tyres Company stands transferred to, and Modi Tyres Company has become a wholly owned subsidiary of, the Continental Group.

Earlier on April 18, 2011, Modi Rubber had signed an agreement with the Continental Group, the world’s fourth largest tyre manufacturer, for the sale of its 100% stake in its subsidiary Modi Tyres Company.