The Hindu Business Line : Suez makes open offer for Ondeo Nalco

SUEZ, a French company, has announced an open offer for acquiring 10 lakh shares of the BSE-listed Ondeo Nalco India Ltd (ONIL) at a price of Rs 323 and an interest of Rs 275.83 per share. The face value of the stock is Rs 10 each.

The interest has been calculated at 15 per cent per annum on the offer price for the period between April 8, 1999 and April 16, 2005, the latest date fixed by SEBI for such a payment. This also marks the end of a long-drawn legal entanglement over the violation of SEBI (Substantial Acquisition of Shares and Takeover) Regulations by Suez, the former parent company of ONIL.

The offer for acquisition of ONIL shares represents 20 per cent of the total stake in the Kolkata-headquartered water treatment and chemical company.

Under an agreement, Suez would sell the acquired shares through this open offer to Nalco Holdings, US, and the 80 per cent stakeholder in ONIL, at present. If the open offer is successful, it would pave the way for delisting of the stock from the BSE and the CSE.

Suez has appointed JM Morgan Stanley as the manager of the offer. For the financial year ended on March 31, 2004, the book value and earnings per ONIL share were Rs 57.4 and Rs 20.6 respectively.

Only those shareholders of ONIL would be eligible for this offer whose names appear on the beneficial records at the close of business on December 24, 2004, the specified date. The offer closes on March 17, 2005.