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Our Bureau

Bangalore , March 4

THE UB Group has said that Calcutta High Court's order to maintain status quo with regard to the trademark and brands belonging to Shaw Wallace and Company, will not in any way, affect the open offer made by it.

Mr Ravi Nedungadi, President and Chief Financial Officer of the UB Group, clarified that the open offer commencing on April 18, will go ahead as scheduled. He went on to add that the UB Group was aware of these liabilities before making the open offer.

The Calcutta High Court order dated March 1, was in response to suits filed against SWC by Vishisth Chay Vyapar Ltd, M.K.J. Enterprises Ltd and M.K.J. Developers Ltd, and which culminated into a decree in mid-December, 1997 for Rs 26,59,40,575, Rs 5,91,80,584 and Rs 2,66,61,355 respectively. An execution application was filed before the High Court wherein these three companies prayed for an injunction against SWC for the transfer of trademarks and brands and also its holdings in various companies as mentioned in their petition.

The Calcutta High Court, vide its order dated March 1, 2005, passed an order of status quo to be maintained as regards transfer of shares of the various companies and as well as brands/trademarks of SWC.

The UB Group asserted that in view of the aforesaid, the three companies namely, M.K.J. Enterprises Ltd, M.K.J. Developers Ltd and Vishisth Chay Vyapar Ltd filed the execution applications for execution of their decrees for the decreetal amounts and obtained status-quo order as against the assets of the SWC and/or directions as mentioned aforesaid. Hence, it has nothing to do with the public offer made by the UB Group of companies to purchase the shares of SWC, which can proceed in its normal way.

The open offer commences on April 18, and closes on May 7. The offer price at which the UB Group proposes to acquire 25 per cent outstanding capital of SWC is Rs 250 per share. This values the equity of SWC at Rs 1,200 crore, which implies a premium of 150 per cent over the average market capitalisation of the past 12 months.

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