Financial Daily from THE HINDU group of publications
Saturday, Mar 20, 2004
Financial Daily from THE HINDU group of publications Saturday, Mar 20, 2004 |
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Corporate
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Mergers & Acquisitions Tube Investments to buy out partner in TI Diamond Chain Our Bureau
Chennai , March 19 TUBE Investments of India Ltd has informed the BSE that the company intends to acquire 12,83,000 equity shares of TI Diamond Chain Ltd (TIDC) at Rs 105 per share from Amsted Industries Inc., the foreign collaborator of TIDC, subject to necessary approvals. TI, then, has to spend Rs 13.47 crore on the acquisition. On completion of this acquisition, the company's holding in TIDC will increase from 49.91 per cent to 70.84 per cent. Consequently, TIDC will become a subsidiary of the company. The rest of the stake is held by the other companies of the Murugappa group; therefore, barring about one per cent stake held by the employees, the entire equity is with the group, Tube Investment's Chairman Mr M.A. Alagappan told Business Line. The funds required for the buy-out "will be raised from within the normal cash flows of TI," he said. Commenting on the move, Mr Adiraj Sarin, Managing Director, Tube Investments, said that the collaborators wanted to consolidate their business and focus only on the US market. As a result, they proposed to sell their stake in the Indian joint venture. "We see a good value in the company, hence we agreed to buy them out," Mr Sarin said. Meanwhile, another group company, Carborundum Universal Ltd has informed the Exchange that Mr M.M. Murugappan will be relinquishing office as whole-time director with effect from close of business on March 31, 2004. He would, however, continue as a non-whole-time Director and as Chairman of the Board.
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