The Hindu Business Line : Alfa Laval ups buyback offer price

Pune May 16 Alfa Laval AB today revised its earlier buyback offer for shares from members of the general public, raising it to Rs 1,300 from Rs 875 per share. The offer that opened on May 7 stands open till May 26 and will apply to all transactions during the period.

The Swedish company proposes to raise its existing 64 per cent shareholding in its Indian arm to 89.99 per cent to maintain the statutory limit of a less than 90 per cent holding that would qualify it for delisting.

Since the company announced its intent to raise its stake in February, the company's share price has been moving up and has been hovering around Rs 1,050 till early May when the offer was to come into effect. However, there were no takers, making a new, more attractive offer, a virtual imperative.

This is the second time in recent years that the parent company has sought to raise its stake in Alfa Laval India. The first time round, in 2001, it made a bid to up it to 76 per cent from the existing 51 per cent, but managed to garner only 13 per cent shares, taking its holding to 64 per cent.

The new offer contributed to the share's smart rally on the stock exchanges today, and breach the Rs 1,200-mark.