Cooper Tire & Rubber Company (NYSE:CTB) today announced it has entered into an option agreement with Chengshan Group Company Ltd. that affirms and provides additional details regarding the previously announced put and call process to resolve the future ownership of Cooper Chengshan (Shandong) Tire Company Ltd (CCT), as contemplated by the January 29, 2014 agreement among the two companies and the CCT labor union. In addition, the new option agreement extends the option commencement deadline, which is the deadline for the independent valuation firm to deliver its fair market valuation of CCT, to August 24, 2014. “Resolving the future ownership of CCT has remained a priority for our organization as we continue to move forward with our growth plans for China,” said Cooper Chairman, Chief Executive Officer and President Roy Armes. “Today’s announcement is another step in that process. As we have previously stated, Cooper is confident in our growth plans for China regardless of who owns CCT in the future,” he concluded. The process for determining the future ownership of CCT begins with an independent valuation of the fair market value of CCT. Once the valuation is delivered, Chengshan has the first option, within 45 days, to elect to purchase Cooper’s 65 percent interest, to sell its 35 percent interest to Cooper, or not to exercise either of these options. If Chengshan determines not to exercise either of the options, Cooper has the right to purchase Chengshan’s 35 percent interest. In the event that neither party elects to purchase the others’ interest, the joint venture continues as currently structured. Further, should Chengshan purchase Cooper’s stake in the joint venture, Cooper will continue to have offtake rights with CCT agreeing to produce Cooper-brand products, including Truck and Bus Radial (TBR) tires, for a minimum of three years. Forward Looking Statements This release contains what Cooper believes are “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995, regarding expectations or matters that the Company anticipates may happen with respect to the ultimate outcome of the transactions contemplated by the January agreement, which involve uncertainty and risk. Such “forward-looking statements” are generally, though not always, preceded by words such as “expects,” “will,” “intends” and similar terms that connote a view to the future and are not merely recitations of historical fact. Such statements are made solely on the basis of Cooper’s current views and perceptions of future events, and there can be no assurance that such statements will prove to be true. It is possible that actual events may differ materially from those expectations due to a variety of factors, including but not limited to: the ability of the independent fair market valuation firm to complete its valuation; and changes in the Company’s relationship with Chengshan, including changes resulting from the January agreement and the new option agreement. It is not possible to foresee or identify all such factors. Any forward-looking statements in this release are based on certain assumptions and analyses made by Cooper in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Investors are cautioned that any such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected. Cooper makes no commitment to update any forward-looking statement included herein or to disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement. Further information covering issues that could materially affect financial performance is contained in Cooper’s periodic filings with the U. S. Securities and Exchange Commission.
About Cooper Tire & Rubber CompanyCooper Tire & Rubber Company (NYSE: CTB) is the parent company of a global family of companies that specialize in the design, manufacture, marketing, and sales of passenger car and light truck tires. Cooper has joint ventures, affiliates and subsidiaries that also specialize in medium truck, motorcycle and racing tires. Cooper's headquarters is in Findlay, Ohio, with manufacturing, sales, distribution, technical and design facilities within its family of companies located in 11 countries around the world. For more information on Cooper, visit www.coopertire.com, www.facebook.com/coopertire or www.twitter.com/coopertire.