The Hindu Business Line : Avery: Resistance to delist plans?

Small investors appear defiant against the overseas acquirer’s move to delist Avery India. The open offer for 21.56 per cent stake in the weighing weight products and systems company began on July 11 and is scheduled to close on July 30. The offer price is Rs 55. However, in the past one month the stock price not only remained above the offer price, but surged ahead. Today, it closed at Rs 77.70 with a traded quantity of 1.68 lakh shares on the BSE. In the past one w eek it has surged by over 18 per cent. According to market sources, the public investors, which include LIC and United India Insurance and a Kolkata-based finance company, do not find the price worthy of unloading. Earlier, also the small investors had resisted buy-back of shares by the company.

On July 31, 2006, A V Acquisition Co.3 Ltd, an affiliate of European Capital SA – a buy-out fund – had acquired Avery Weigh-Tronix Holdings Ltd, UK, which through its subsidiary, Avery Berkel Holdings Ltd., UK held 53.44 per cent in Avery India. The acquisition by A V Acquisition Co.3 Ltd had resulted in an indirect acquisition of control over Avery India. Interestingly, the new acquirer had planned the open offer last year, but revised the dates. According to earlier schedule, the offer was to open on September 21, 2006 and close on October 10, 2006.

Jayanta Mallick

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