Financial Daily from THE HINDU group of publications
Wednesday, Jun 09, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jun 09, 2004 |
||
|
|
||
|
Corporate
-
Mergers & Acquisitions Sterlite offers to buy 49 pc residual stake in Balco Our Bureau
New Delhi , June 8 THE Anil Aggarwal promoted Sterlite Industries Ltd has offered to buy out the Government residual stake of 49 per cent in the aluminium major Balco. Sterlite, which had acquired a controlling stake of 51 per cent in Balco for Rs 551 crore in 2001 from the Government, has decided to exercise its call option to acquire the residual stake in the company, Government sources said. The three-year period for exercising the call option on the residual stake prescribed under the shareholders' agreement ended early this year. The Sterlite Group had informed the Government about the proposal to hike its stake, but the deal was yet to be concluded. "No decision has been taken on the offer", the sources disclosed. If the offer is accepted by the Government, Sterlite, (the strategic partner) would have to pay either the fair value as determined by the valuers or pay 14 per cent compounded interest over the price it had paid the Government while acquiring the 51 per cent stake. The Sterlite Group had resisted the previous NDA Government's attempt to sell a portion of the residual equity in Balco early this year through the public offer route.
More Stories on : Mergers & Acquisitions | Engineering
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|