Outcome of Board Meeting (TIL to acquire promoter shareholding in Shanthi Gears)

Tube Investments of India Ltd has informed BSE that the Board of Directors of the Company, at its meeting held on July 13, 2012), approved the acquisition of 3,60,50,291 equity shares of Re.1 each of Shanthi Gears Limited ("SGL"), Coimbatore, from the Promoters of SGL, representing 44.12% of SGL’s equity capital, at Rs. 81/- (Rupees eighty-one) per share.

Pursuant to the above, the Company, on July 13, 2012, has entered into a Share Purchase Agreement with the Promoters of SGL, for the purchase of the above said shares.

Consequent to the above, the Company will be making an Open Offer to the shareholders of SGL to acquire from them 2,12,46,122 fully paid up equity shares of Re.1/- each, at a price of Rs. 81/- (Rupees eighty-one) per share, representing 26% of the paid up share capital of SGL, in terms of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Regulations”). We enclose herewith the Public Announcement to the shareholders of SGL in terms of the Regulations. The Company has submitted to BSE a copy of the Public Announcement & a copy of the press release in this regard.

The transaction is subject to the approval of the shareholders of the Company under Section 372A of the Companies Act, 1956. The Company will be seeking the approval of the shareholders, through postal ballot, for the investment in the shares of SGL for an amount not exceeding Rs. 500 crores.

Source : BSE - www.bseindia.com

Published on July 13, 2012
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