The open offer process initiated by Lazard India on behalf of IP (International Paper) Holdings Asia Singapore PTE Ltd, along with International Paper Company (persons acting in concert) to acquire additional stake in Andhra Pradesh Paper Mills Ltd, has hit a SEBI road block with the acquirers asked to revise the open offer price.

SEBI in its observation letter dated August 3 has called upon the acquirers to revise the offer price that the acquirers had indicated in the public advertisement. In the letter, SEBI has noted that certain promoter group sellers (members of the L.N.Bangur family) are ineligible to receive the non-compete fee. It has therefore directed that the open offer price be revised to include non-compete fee.

According to a statement made to the stock exchanges, the acquirer, aggrieved with the SEBI decision, filed an appeal before the Securities Appellate Tribunal (SAT) on August 5, seeking to set aside the above direction contained in the SEBI observation letter.

The NYSE-listed International Paper in March this year had announced they have signed up an agreement to acquire 53.5 per cent stake in AP Paper from Mr L.N.Bangur, his family members and affiliates, paying $257 million in cash with additional $62 million non-compete payment to the sellers totalling about Rs 1,435.5 crore.

The open offer price had been fixed at Rs 544.20 a share to pick up additional 21.5 per cent stake of APPM for approximately $104 million (about Rs. 468 crore), to take its stake up to 75 per cent.

The company shares were trading 3.56 per cent lower at Rs. 360. 50.

Meanwhile, the company logged a net profit of Rs. 16.31 crore for the quarter ended June 30, close to the number during the first quarter corresponding quarter last year.

The revenue however was up 13.03 per cent at Rs 199.33 crore (Rs 176.35 crore).

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