UPDATE 2-Sibur, Amtel form Russian tyre venture

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By Vladimir Soldatkin and Amie Ferris-Rotman

MOSCOW, June 30 (Reuters) - Russian petrochemical company Sibur is buying a controlling stake in indebted tyre manufacturer Amtel-Vredestein (AMVq.L: Quote, Profile, Research) to form a top 10 global tyre maker, the companies said on Monday.

Under the terms of the deal, Amtel will buy Sibur's existing tyre-making business through the issue of almost 160 million new ordinary shares to Sibur.

Amtel, which has suffered from debt refinancing problems, also plans to raise $150 million through a private placement of almost 80 million shares at no less than $1.89 each. Sibur will buy $50 million of these shares and Sibur-Russian Tyres will provide $40 million in interim funding.

"On the one hand this is a reverse acquisition, by which Sibur, a private firm, buys listed firm Amtel through its subsidiary," Sibur-Russian Tyres Deputy General Director for Strategic Development Igor Karavaev told reporters.

"As a result, the company and its listing on the London Stock Exchange is saved, which has become one of the main goals in joining our businesses," he said.

Sibur-Russian Tyres, which had a 20 percent share of Russia's tyre market last year, is the largest tyre producer in eastern Europe, with orders totalling over $1 billion annually.

Amtel, however, has said it expects to see continued losses.