The Hindu Business Line : Rossell Tea promoters plan to make open offer for 20%

Kolkata April 5 Rossell Tea (latest incarnation of former entities Rossell Industries and Jokai Tea), which is listed on the Calcutta Stock Exchange and Guwahati Stock Exchange, appears one step ahead in exiting the secondary capital market as a few members of the promoter group have proposed to make an open offer of another 20 per cent stake.

However, the promoter group does not intend to de-list the company right away. The acquirers have undertaken in the offer letter "to comply with the provisions of the listing agreement in consultation with the exchange" so as to maintain the minimum 25 per cent public shareholding required for continuous listing.

Promoters and PACs, after a preferential allotment on March 28, 2007, jointly hold 67.01 per cent of the paid-up capital of Rossell. So effectively, the acquirers would only pick up 7.99 per cent of the enlarged capital post preferential allotment, the CSE Manager (Listing) explained to Business Line.

The stock, held in physical form also, is irregularly traded on the CSE and GSE.

The company, which owns five gardens in Assam, is the successor company of Jokai India Ltd, established in late 19th century.

Among the acquirers is the New Delhi-based BMG Enterprises Ltd, which also exports aircraft parts.

The offer price is Rs 22.50 for each Rs 10 share.

Incidentally, this was the price paid by the promoter group entities in the recent preferential allotment.