The Hindu Business Line : Magma Leasing promoters buy out Allahabad Bank stake

Mr Mayank Poddar, and Mr Sanjay Chamria, Managing Director of the company, who jointly control over 70 per cent of the equity shares of Magma Leasing, on Friday signed an agreement with Allahabad Bank to acquire approximately 12.8 per cent of the equity capital of Magma held by the bank. This is the entire holding of the bank in Magma. The acquisition has been made at a price of Rs 25.50 per share.

Talking to Business Line, Mr Sanjay Chamria, said that, in line with the applicable regulations, an offer was being made to the public shareholders of Magma.

Mr Chamria said the deal has cost the company Rs 3.62 crore. He clarified that as per SEBI guidelines, within four days of the signing of the agreement, the money and the shares have to be lodged with an Escrow Agent, who, after completion of all stipulated formalities, will effect the exchange.

On the open offer price, Mr Chamria said it was being worked out strictly as per SEBI guidelines.

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