Sicom Ltd has come out with an open offer to shareholders of Aster Silicates to acquire 61.16 lakh shares or 26 per cent of the emerging voting capital of the company. Sicom has fixed the offer price at Rs 12.64 per equity share of Rs 10 each.
On the BSE, the Aster Silicates stock jumped 5 per cent to Rs 16.05. The open offer got triggered after Sicom converted its loan in the company into shares.
Sicom had executed a loan agreement on December 11, 2012, for a secured loan of Rs 20 crore for revival of the operations of Aster Silicates. The loan agreement provided for an option and right to the lender to convert a part of or entire outstanding amount of the loan along with interest accrued into equity shares.
Accordingly, Sicom exercised the conversion option to the extent of Rs 10 crore by way of a preferential issue.
On allotment of equity shares under the preferential issue, the shareholding and voting rights of Sicom would be 86.65 lakh equity shares constituting 36.83 per cent of the Emerging Voting Capital.
Accordingly, the proposed ‘open offer’ is a Triggered Offer made under Regulation 13(2)(g) of the regulations.
Assuming full acceptance, the total consideration payable by the acquirer would be Rs 7.73 crore.
Aster Silicates Ltd, a manufacturer of sodium silicate, is listed both on the BSE and NSE, but the latter has suspended the scrip from trading.
About 10,500 retail shareholders hold shares in the company. The company came out with a Rs 53-crore IPO in June 2010.