Financial Daily from THE HINDU group of publications
Sunday, Jan 19, 2003
Financial Daily from THE HINDU group of publications Sunday, Jan 19, 2003 |
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Investment World
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Open Offers Corporate - Open Offers Skol Breweries: Accept Nath Balakrishnan
INVESTORS in Skol Breweries (SKOL) can consider accepting the open offer made by Shaw Wallace Breweries Ltd (SWBL) at a price of Rs 38.07, for acquiring the remaining 10.03 per cent equity stake in SKOL. SWBL, which already holds 89.97 per cent stake in SKOL, has manufacturing facilities across the country and is engaged in the production and marketing of beer brands such as Haywards and Royal Challenge. This open offer is being made as part of a consolidation exercise on the part of Shaw Wallace, to brings its beer brands under one roof and enhance their competitive standing in the market. Initially, the open offer was made to acquire a 9.98 per cent stake in SKOL, excluding the 0.05 per cent stake held by Shaw Wallace Financial Services, Narmada Gelatines Ltd and other affiliate companies of SWBL, and the Jumbo Group. Subsequently, the offer was revised to include this holding too, though the offer price remained unchanged. One of the key reasons why investors can look at taking advantage of the open offer is the low liquidity of the stock on account of public shareholding having fallen below 10 per cent. With the open offer priced at a premium to both the current market price (Rs 37) and the stock's 52-week-high, investors can consider capitalising on the offer.
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