Financial Daily from THE HINDU group of publications
Friday, Oct 17, 2003
Financial Daily from THE HINDU group of publications Friday, Oct 17, 2003 |
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Breweries Corporate - Open Offers Herbertsons: Mallya raises open offer price to Rs 215 Our Bureau
Bangalore , Oct. 16 THE UB group Chairman, Mr Vijay Mallya, has upped the offer price to the shareholders of Herbertsons to Rs 215 per share in his bid to retain control over the country's third largest spirits company. Mr Mallya's offer is a counter to his rival, Mr Kishore Chhabria's offer for 20 per cent shares of Herbertsons at Rs 210.74. Mr Chhabria's offer opens on Friday. "We have lots of time and we will come out with a revised bid soon," sources close to Mr Chhabria said. Kotak Mahindra Capital Company Ltd, on behalf of UB group companies - McDowell & Co Ltd, Phipson Distillery Ltd and UB Holdings Ltd - informed the shareholders about the upward revision, which would increase the financial resources required for the offer to Rs 92.45 crore. On September 10, the UB group had come out with a counter offer pegged at Rs 200 per share and the total cash outflow was estimated at Rs 86 crore. Kotak has advised the shareholders to wait till November 20 to know the final price of each bid, as the offer price cannot be revised after that day. On August 1, Securities Appellate Tribunal (SAT) directed Mr Chhabria, who holds 43 per cent stake in the company, to make an open offer for another 20 per cent of the shares. On August 21, he made the offer at Rs 90.95 per share and, under SAT directions, also offered 15 per cent annual interest to those shareholders holding shares from January 25, 1995 taking the total consideration to Rs 210.74 per share. Mr Mallya countered it with Rs 200 per share offer. Later, Mr Chhabria offered to pay 15 per cent interest to all shares irrespective of the period of holding of acquisition subsequent to January 25, 1995.
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