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Wednesday, Apr 17, 2002

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Wartsila makes 2nd open offer for Indian arm

Our Bureau

MUMBAI, April 16

FINNISH power major, Wartsila Corporation along with Wartsila Technology Oy Ab, today announced its second open offer to acquire up to 18.34 lakh shares (15.24 per cent) of the Indian subsidiary, Wartsila India, at Rs 120 for every share of face value of Rs 10.

Following the second open offer, the company plans to delist its share from the stock exchanges.

Wartsila India's share price jumped by 8.29 per cent to Rs 115.60 on the BSE on the news of the open offer. Wartsila closed at Rs 116.10 on the NSE, up 8.45 per cent.

Wartsila Corp and Wartsila Technology together hold about 1.02-crore equity shares representing 84.76 per cent paid-up capital of Wartsila India.

According to a press release, the buyback is part of the parent company's restructuring programme initiated since year 2000. The opening date of the offer is May 27, 2002 while it closes on June 25, 2002.

Also, Wartsila Corp normally has 100 per cent ownership of companies in all countries where it operates. It now plans to do the same in India.

The company had made a similar offer in September last year. If public shareholding falls to below 10 per cent or below the voting capital of the Indian arm, Wartsila Corp will make another offer to buy out the remaining outstanding equity shares, the release said.

The new offer would be made within three months from closure of the offer at the same price and would be open for six months, the release said.

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