The Hindu Business Line : Clariant to make open offer for 20% Colour Chem stake

THE Switzerland-based speciality chemicals major Clariant International Ltd AG will make an open offer to acquire 20 per cent stake in Colour Chem Ltd at Rs 318 per share.

In a notification to the stock exchanges, EBITO Chemiebetelligungen AG which is a wholly owned subsidiary of Clariant International Ltd (CIL) which is a wholly owned subsidiary of Clariant AG (CAG) will make an open offer to acquire 23,30,000 fully paid-up equity shares of Rs 10 each representing 20 per cent of the paid-up equity share capital of Colour Chem Ltd (CCL).

Clariant currently holds 58,37,080 shares representing 50.1 per cent in the paid-up equity share capital of CCL.

The offer opens on May 28 and closes on June 26.

HSBC Securities & Capital Markets India Pvt Ltd are the merchant bankers.

Shares of Colour Chem Ltd rose by 8.78 per cent to close at Rs 219.25 with 1.56 lakh shares being traded on the BSE. On the NSE, it increased by 9.06 per cent to close at Rs 221 with 3.53 lakh shares changing hands.

Following a global acquisition of Hoechst AG's chemicals business by Clariant International, the latter got a 50.1 per cent stake in Colour Chem earlier held by Hoechst.

Further, the Swiss company had sought an exemption from making an open offer for 20 per cent stake from shareholders from the Securities Exchange Board of India.

However, the regulator had asked Clariant in October to make the open offer in accordance with the country's takeover rules after the Swiss firm gained a controlling stake in Colour Chem.

According to the company, the issue is in line with a recent Securities Appellate Tribunal order stating that those shareholders on the company's record books from 1998 onwards will be entitled to an interest payment.

However, the company is contesting in the Supreme Court for a reduction in the interest payment.

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