NEW DELHI, May 21: International tyre giant Bridgestone is hiking its stake in Bridgestone ACC India Ltd from 51 % to 64 % while another 10 % equity is being picked up by Mitsui of Japan.

This will result in a sharp reduction in ACC's equity stake from 49 % to 26 %The proposal to make a drastic change in the equity structure of the joint venture has been cleared by the foreign investment promotion board (FIPB).

The paid up capital of Bridgestone ACC has also been scaled down from Rs 155.20 crore to Rs 139 crore. Bridgestone of Japan will invest Rs 88.96 crore to pick up the 64 % stake while Mitsui & Co will chip in with Rs 13.90 crore to pick up the 10 % stake.

ACC's vice-chairman S Ganguly, while confirming the change in the shareholding pattern, said that the management structure will remain unchanged. Bridgestone ACC will also continue to remain a closely held company, he said, adding that there were no plans to go in for a public issue to part-finance the project.

The joint venture will manufacture rubber pneumatic tyres and inner tunes and the first proposal was cleared by FIPB with a 51 % foreign participation in July 1996.

Bridgestone ACC approached the FIPB with representation that its board of directors had passed a resolution permitting Bridgestone Corporation to invite Mitsui to participate in the equity capital of the project to the extent of 10 % with equity capital of Rs 139 crore.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.