The Hindu Business Line : Withdrawal of delisting offer weakens Bosch Chassis

Kolkata, April 7 After Robert Bosch GmbH, the ultimate holding company of the overseas promoter of Bosch Chassis System India Ltd, rejected the final price of Rs 750 a share established by the reverse book building process, the stock has been on a continuous decline. On Monday, the stock declined by 5 per cent. The stock finished at Rs 455.

The stock has fallen by over 34 per cent from the closing price of Rs 691 on March 31. On April 1, Citi Global Markets India, the manager to the de-lising offer, informed that the acquirer has rejected the price.

The offer opened on March 24 and closed on March 28, 2008 for the shareholders of Bosch Chassis System India Ltd holding shares in the dematerialised form through reverse book building process using electronic facility of the BSE. Robert Bosch GmbH also withdrew the de-lisiting offer saying that acquirer has no obligation to acquire the equity shares tendered in the de-listing offer.

“The shares tendered in the de-listing offer will be returned to the shareholders on or around April 2, 2008, in accordance with the delisting guidelines,” it said.

The foreign promoters had offered to buy all outstanding shares (4,158,906 shares of Rs 10 each) representing 20.0 per cent of the paid-up capital of the company. Prudential ICICI Trust Ltd (account Emerging Star), Principal Trustee Co and Gagandeep Credit Capital jointly hold about 4.7 per cent.

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