• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Blue Dart to convene EGM for the proposal

Mumbai , Aug. 17

DHL is prepared to acquire Blue Dart Express shares at a maximum of Rs 550 per share to buy out the company and delist it from the exchanges.

DHL already owns 81 per cent stake in Blue Dart Express.

The Board of Directors of Blue Dart Express on Thursday recommended DHL's delisting proposal and has decided to call for an EGM for getting shareholder approval too, according to a statement to the stock exchanges.

DHL will acquire the shares under a reverse book-building process, subject to all requisite shareholder and regulatory approvals being obtained.

The exit price will be determined in accordance with the reverse book build process specified by regulations and shareholders may tender their shares at any price at or above the "floor price", also determined by the SEBI guidelines, which works out to around Rs 500 a share, said the statement.

DHL's maximum price of Rs 550 per share is at a premium of around 10 per cent to the average of the closing prices of the company's shares as quoted on the National Stock Exchange (NSE) in the six months preceding the date of Delisting Proposal and a 16 per cent premium to the closing price of Rs 474 per share on the NSE on August 11, said the statement. DHL reserves the right not to acquire the offered shares if the final price, as established pursuant to the guidelines, is more than Rs 550 per share.

DHL had acquired Blue Dart at Rs 350 per share one and a half years ago.

The Blue Dart stock fell on the exchanges. On the BSE, it lost Rs 23.65 to close at Rs 564.80.

On the NSE, it closed at Rs 565.85, a drop of Rs 24.30 per cent. About 82,200 shares changed hands on the NSE, of which, only 29.86 per cent was presented for delivery.

More Stories on : Open Offers | Stocks | Supply Chain Management

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
DHL to buy Blue Dart shares at maximum of Rs 550 a share

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line