Business Daily from THE HINDU group of publications
Wednesday, Jun 21, 2006
Business Daily from THE HINDU group of publications Wednesday, Jun 21, 2006 |
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Corporate
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Open Offers Markets - Foreign Institutional Investors Our Bureau
Stakeholding pattern Indian promoters hold 22.92 per cent stake in Easun Reyrolle. VA Tech Hydro GmbH (now owned by Siemens) holds 23.54 per cent. Private corporate bodies hold 14.66 per cent and public 38.43 per cent.
Chennai , June 20 Easun Reyrolle Ltd, a Chennai-based company that produces electrical power management products, has refused to agree to the proposal of Siemens to acquire shares in the company through an open offer. Easun Reyrolle has also refused to issue a no-objection certificate as required by the Foreign Investment Promotion Board for Siemens to acquire an additional 20 per cent stake in Easun through the open offer. The board of Easun Reyrolle has communicated this decision to the National Stock Exchange. Siemens had got a 23.54 per cent stake in Easun Reyrolle through its acquisition of VA Tech Hydro GmbH. This made it necessary for Siemens to make an open offer to acquire an additional 20 per cent stake in Easun Reyrolle and also seek the FIPB's approval for this investment. The application to the FIPB required that Siemens provide an NOC from the Indian promoters.
`Direct competitor'
In its communication to the stock exchange, Easun Reyrolle has said that Siemens is a direct competitor in the same line of business of Easun Reyrolle and that the interest of the company and its shareholders would be affected if FIPB approved Siemens' application. The Indian promoters hold 22.92 per cent stake in Easun Reyrolle while VA Tech Hydro GmbH (which has now been acquired by Siemens) holds 23.54 per cent. Private corporate bodies hold 14.66 per cent and Indian public 38.43 per cent, according to information on the NSE's Web site. According to industry observers, it was expected that the board of directors of Easun Reyrolle would reject Siemens' proposal for an open offer and would also refuse to grant the NOC. It is likely, according to them, that Siemens will sell its stake in Easun Reyrolle over a period of time. For the year ended March 31, 2006 Easun Reyrolle reported a net profit of Rs 13.08 crore on sales of Rs 106.40 crore. Easun Reyrolle's shares closed at Rs 604.15 today on the NSE, against Monday's close of Rs 617.30.
More Stories on : Open Offers | Foreign Institutional Investors | Electrical Goods
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