SHARES of Double Coin Holdings Ltd rose by its daily limit yesterday after the Chinese tire maker said it brought French giant Michelin in as a strategic investor.

Michelin will invest 666.7 million yuan (US$104 million) in Double Coin Group (Anhui) Warrior Tires Co for a 40 percent stake, Double Coin Holdings said in a statement yesterday.

Double Coin Holdings rose 10 percent to 13.23 yuan on the Shanghai Stock Exchange.

After the transaction, Double Coin Holdings will trim its stake in the Anhui Province-based joint venture to 40.8 percent from 68 percent and Shanghai chemical group Huayi will cut its holding to 19.2 percent from 32 percent.

Huayi is the state-owned parent of Double Coin Holdings.

The venture plans to invest 3.5 billion yuan to build a plant to make 15 million passenger car and light truck tires per year in Anhui, Double Coin Holdings said.

Source:shanghaidaily