Financial Daily from THE HINDU group of publications
Tuesday, Feb 10, 2004
Financial Daily from THE HINDU group of publications Tuesday, Feb 10, 2004 |
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Markets
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Stock Markets Tata Tea exits FAL Industries Jayanta Mallick
Kolkata , Feb. 9 THE Chennai-based FAL Industries has seen Tata Tea making an exit from it. Tata Tea had a 5.3 per cent stake in FAL. On February 6, it sold off its holding of 2,41,659 shares through off-market spot deals. Two other Tata Group outfits — Tata Chemicals and Tata Investments Corporation — hold 12.49 per cent and 3.6 per cent stake, respectively, in FAL This is an interesting development considering that the Shapoorji Pallonji group, namely Sterling Investment Corporation, Shapoorji Pallonji Co and Cyrus Investment, is currently running an open offer for 20 per cent in FAL at Rs 20 per share. The revised date for conclusion of the open offer is February 20. On the date of public announcement for open offer on October 11, 2003, the Shapoorji Pallonji group through its three outfits held 70.47 per cent in Forbes Gokak Ltd, which along with its subsidiary Forbes Estates Ltd and its associate Warrior Investments Ltd jointly held 37.69 per cent in FAL. According to market sources, the disinvestment of Tata Tea in FAL is a precursor to two other group outfits' proposed exit from FAL. Market sources close to the development suggested that the sale or proposed sale price of the strategic stakes of Tata Group outfits are higher than the open offer. "This is why it has been done through off-market deal and was not presented in the open offer," they said.
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