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Our Bureau

Mumbai, Sept. 24 Zandu Pharmaceutical Works has appealed against SEBI’s clearance of the open offer by Emami for an additional 20 per cent of Zandu’s shares. And the issue comes up for hearing at the Securities Appellate Tribunal or SAT, on September 25. The open offer was cleared by SEBI on September 12, 2008.

Emami had bought 24 per cent at Rs 6,900 a share or at a total cost of Rs 130 crore in Zandu in June, triggering the open offer. But clearance from SEBI did not come for about three months, as both parties raised various objections against each other.

Emami’s open offer for 1.61 lakh equity shares was originally scheduled to start on July 24 and close on August 12. But with the SEBI clearance coming in the last week, both the companies informed the exchanges that the open offer would begin on September 26, 2008 and would close on October 15, 2008. Emami also revised the open offer price from Rs 7,315 to Rs 15,000.

In the meanwhile, Zandu had approached several authorities, including SEBI, the Company Law Board (CLB) and the Bombay High Court to stave off Emami’s proposal. And in accordance with the order of the Bombay High Court, Zandu had earlier postponed its AGM to September 24. But this has been rescheduled again, after two last minute stay orders were obtained against the proceedings, leaving shareholders stranded at the venue of the AGM on Wednesday.

The share price of Zandu was down 1.64 to close at Rs 14,821, while Emami closed 2.63 per cent up at Rs 273.25. The share price of Zandu has dipped more than seven per cent in the last week, whereas, Emami has gained two per during this period.

More Stories on : Open Offers | Courts/Legal Issues | Mergers & Acquisitions

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