Business Daily from THE HINDU group of publications
Wednesday, Jun 11, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Wednesday, Jun 11, 2008 ePaper | Mobile/PDA Version | Audio |
|
|
|
|
|
|
|
Markets
-
Stocks Corporate - Buyback
R.Y. Narayanan Coimbatore, June 10 The board of directors of Bosch Chassis Systems India Ltd (BCSIL) is meeting on June 12 to consider the issue of hiking the share buyback price. This follows the decision by Robert Bosch Gmbh, the parent holding company of BCSIL, to make another buyback offer and acquire all outstanding shares of BCSIL at a higher price than what it was willing to offer earlier. SEBI GuidelinesThe German parent had earlier withdrawn the delisting proposal, as the price of Rs 750 a share, determined by the reverse book-building process, was far higher than the Rs 415 a share it offered. The company is now willing to pay up to Rs 600 a share. The share price of BCSIL jumped 20 per cent in both the BSE and NSE today. It closed at Rs 530.90 on the NSE (the number of shares traded was 52,462), and at Rs 538.85 on the BSE. In a communication to the BSE today, BCSIL said its board of directors has received a letter from Robert Bosch Gmbh on June 2, proposing to make another voluntary delisting of the shares of the company from the BSE and NSE, under SEBI Guidelines, and to acquire all outstanding shares of the company in accordance with the guidelines, ‘provided the price payable for an equity share does not exceed Rs 600’. At present, Robert Bosch LLC and Robert Bosch Investment Nederland B.V. — the promoters of the company — collectively hold 80 per cent of the total issued share capital of the company. Exit opportunityRobert Bosch had earlier made a public announcement to the shareholders of the company on February 29 in accordance with the delisting guidelines. However, the price determined by the reverse book-building process, i.e. Rs 750 per equity share, was not acceptable to Robert Bosch, which rejected the final price in accordance with the delisting guidelines on April 1, 2008. The company notification said that based on the feedback received following the outcome of the previous delisting offer, Robert Bosch now proposes to provide another exit opportunity to the minority shareholders of the company. The offer is proposed to be made to ‘enhance operating flexibility and provide an exit opportunity to the public shareholders of the company’. Pursuant to the delisting offer, the shares listed on the BSE and the NSE will be delisted. Voluntary Delisting
The German parent company had proposed to acquire up to 4,158,906 equity shares of Rs 10 each representing 20 per cent of the fully paid-up equity share capital of company. The shareholders of the company had granted their approval for a voluntary delisting from the stock exchanges, by requisite majority, at an EGM held on February 27. The floor price of the delisting offer, determined in accordance with the delisting guidelines, was Rs 415 a share, which was the average of the 26 weeks traded price quoted on the stock exchange, where the shares are most frequently traded. More Stories on : Stocks | Buyback | Automobile Components
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
 |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, 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
|