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Abhrajit Gangopadhyay

Bangalore , June 14

CONNECTIVITY solutions and cabling products firm Krone Communicaitons Ltd, which recently came under the ownership of ADC, has ruled out any possibility of an open offer for the time being.

"Currently, we do not have any plan for open offer... primary ownership continues to be with Krone Germany... it has been a layered acquisition," company officials said.

Krone India, is 51 per cent owned by Krone Germany. ADC Telecommunications Inc acquired Krone group from Gen-Tek Inc for $350 million and the buy-out process was completed in mid-May. ADC paid net cash close to $294 million and assumed certain defined liabilities, mainly Krone's pension obligation for its German workforce.

While Indian promoters hold 11 per cent stake in the company, free float in the market as in public holding is 31.42 per cent of its equity capital. Following the acquisition, market was rife with speculations of a 20 per cent open offer from ADC.

"There has been a lull in the stock movement as there has been no imminent directions towards open offer," an analyst with a local brokerage said.

The company reported a net profit of Rs 1.05 crore over a total income of Rs 11.11 crore in the January-March of its first quarter of the current year. Krone said its net profit for fiscal 2003 was Rs 3.66 crore over a total income of Rs 57.24 crore.

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