Business Daily from THE HINDU group of publications
Monday, Jun 23, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Monday, Jun 23, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Mergers & Acquisitions Markets - Stocks As any stake acquisition over 15 per cent in a listed Indian company triggers an open offer for another 20 per cent, this deal would ensure controlling stake for the acquirer in GHCL. Jayanta Mallick Kolkata, June 22 At least three UK-based companies are interested in picking up a controlling stake in GHCL Ltd, which is into soda ash and textiles. One of the intending investors has offered $175 million for a 20 per cent stake in the company, according to reliable sources.
According to sources close to a Mumbai-based investment arranger, Sanghi Advisors, one of its clients, which is a UK investor, is currently engaged in negotiations for determining the control premium for eventual transfer of the controlling stake. GHCL officials declined to comment on the development. As any stake acquisition over 15 per cent in a listed Indian company triggers an open offer for another 20 per cent, this deal would ensure controlling stake for the acquirer in GHCL. Sources say two other British investors have also shown interest in GHCL’s home textiles and retail business, which is poised for expansion in the country as well as in Eastern Europe and South East Asia. GHCL is present in the UK retail home textiles market through Roseby’s and also in the US. According to Sanghi Advisors, “Our client in the UK has expressed interest in the retail business vertical of GHCL in India and UK and would like to explore the possibility of arranging investment of $175 million”. Sources said the control premium would eventually fix the exact percentage of stake to be acquired. The deal may be wrapped up by the middle of next month, sources added. A rough estimate suggests the acquisition price per share could go up to Rs 300. Once the deal is through, the GHCL may opt for restructuring of its two businesses – soda ash and home textiles – by creating two separate entities. “The proposed separation of businesses would not come in the way of fresh investment and change in controlling stake in GHCL,” sources confirmed. Mr Sanjay Dalmia-controlled GHCL logged a turnover of Rs 1,070 crore in 2007-08. The promoters control 41.56 per cent of its Rs 99.59 crore paid up equity. The GHCL stock is currently trading at Rs 64. More Stories on : Mergers & Acquisitions | Chemicals | Stocks
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