Financial Daily from THE HINDU group of publications
Tuesday, Jun 06, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jun 06, 2006 |
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Info-Tech
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Open Offers EDS' open offer for MphasiS BFL closes Our Bureau
Bangalore June 5 The conditional open offer by EDS to acquire a 52 per cent stake in the Bangalore-based IT services and BPO firm MphasiS BFL Ltd closed on Monday. Details of the response to the open offer, which opened on May 17, were not known immediately. It is expected that EDS will make a formal announcement on the response soon. The offer at Rs 204.5 a share will be contingent upon EDS acquiring 83 million shares, representing approximately 52 per cent of current shares outstanding. If at least 83 million shares are not tendered in the offer, EDS will not accept any shares tendered.
Attractive pricing
The market expectation is that the open offer would sail through as the EDS offer price looked attractive compared with the ruling MphasiS share price in view of the bear grip on the stock markets. MphasiS shares closed lower by half a per cent at Rs 188 on Monday at the BSE over the previous close. Largest institutional shareholder in MphasiS Baring India Pvt Ltd said on Friday that it was offloading its entire stake of 34.73 per cent in MphasiS through the open offer. Baring is expected to realise close to Rs 1,150 crore by selling over 5.6 crore share it held in MphasiS.
Offloading stake
Apart from Baring, a couple of key officials of MphasiS have also offered to sell their stake in the open offer. Recently, the MphasiS BFL's Chairman and Managing Director, Mr Jaithirth Rao, offered to sell 18.75 lakh shares to EDS through the offer. With his offer, Mr Rao's holding in MphasiS would get reduced to 2.8 per cent from the current 3.97 per cent. Mr Rao would be richer by Rs 38 crore if the entire 18.75 lakh shares that he has tendered in the open offer are accepted. The MphasiS Director, Mr B.R. Menon, has also offered to sell one lakh shares on Friday. The mode of sale was through ESOP and the shareholding of Mr Menon after the sale was one lakh shares aggregating to 0.06 per cent of the total paid up capital, the company said in a note to the NSE on Monday.
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