The Hindu Business Line : No obligation on Akzo Nobel for ICI India open offer: SEBI

The SEBI has ruled that Akzo Nobel need not come out with a mandatory open offer of 20 per cent to the public shareholders of ICI India after the Netherland located MNC completes acquisition of Imperial Chemical Industries Plc (ICI) of the UK, which holds 52.96 per cent stake in the Indian outfit.

In response to the Akzo Nobel’s communication, market regulator said on Tuesday that the provision for open offer under the SEBI takeover norms “shall not apply to the indirect acquisition of control over ICI India by Akzo Nobel” as the takeover was being effected through a scheme of arrangement.

The SEBI averred that the takeover regulations (3(1)(j)(ii)) specifically exempts such offer if the overseas acquisition was through a scheme under foreign laws.

The SEBI concluded that as the take over of the parent company was taking place under the provisions of the UK Companies Act, 1985, “Akzo Nobel will not have any obligation to make an open offer to acquire shares of ICI India”.

Buy-back in progress

Meanwhile, ICICI Securities, the manager to the proposed buyback on behalf of ICI India Ltd, on Monday issued a public announcement (as a follow up of the original announcement, made on July 26, 2007) saying that during the period between November 19 and December 4, ICI India has bought 3,454 equity shares through the BSE and 3,491 shares through the NSE.

On November 7, ICICI Securities had informed that in the period from October 18 to November 2, ICI India had bought 26,589 equity shares through the BSE and 1,25,302 shares through the NSE.

ICI India shares on Tuesday closed at Rs 582, up over 8 per cent. In the past one week the stock has gained 4.5 per cent and in the last one month, the counter has seen a price gain of 11 per cent.

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