Financial Daily from THE HINDU group of publications
Wednesday, Feb 19, 2003
Financial Daily from THE HINDU group of publications Wednesday, Feb 19, 2003 |
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Markets
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Open Offers SAT upholds SEBI order on Wimco — Swedish Match to make open offer Our Bureau
MUMBAI, Feb. 18 THE Securities Appellate Tribunal (SAT) today upheld the Securities and Exchange Board of India (SEBI) order directing Swedish Match Group (SMG) to make an open offer for 20 per cent shares to the shareholders of Wimco. Rejecting the appeal, the SAT said in an order that SMG has to make the open offer as directed by SEBI within 45 days from the order. According to SEBI, the open offer to the shareholders of Wimco would be at Rs 35 per share, as this price triggered the SEBI Takeover Code. According to SEBI, the Swedish multinational along with its various group companies has to make the offer, taking September 27, 2000 as the reference date for calculation of the offer price . In addition, the multinational has to pay interest at 15 per cent per annum to the shareholders for the loss of interest caused from January 27, 2001 till the actual payment. The open offer follows SMG increasing its stake from 52.11 per cent to 74 per cent by acquiring Wimco shares from Jatia group (both jointly in control of Wimco) at Rs 35 per share in September 2000. The effective open offer works out to Rs 45.50 per cent taking interest into account. This offer price is at a premium of over 50 per cent to today's closing price of Rs 29.25 on the BSE. Stock on fire: The stock price of Wimco gained around 60 per cent in the last six trading sessions, increasing from Rs 18.30 on February 18 to today's closing price of Rs 29.25 on the BSE. On the NSE, the stock closed at Rs 28.70. Trading volumes also improved in the counter. During the period, volumes have increased from around 5,000-6,000 shares a day to 4.07 lakh shares on the BSE. On the NSE, volumes increased to 8.32 lakh shares. Stockbrokers said the active buying was on the possibility that most public shares will be accepted in the open offer.
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