A slew of independent valuation reports submitted to SEBI with regard to the open offer involving Federal Mogul Goetze (FMG) have suggested higher offer price than the one given by accounting firm Haribhakti and Company LLP, sources in the know of the development told BusinessLine .
Tenneco, the acquirer of FMG, had given an open offer price of ₹400 a share. SEBI decided it should be ₹608.46 based on a valuation report by Haribhakti and Company. Some retail investors said it should be ₹1,200 a share. In May, the Securities and Appellate Tribunal (SAT) had given FMG retail investors and Tenneco three weeks’ time to raise their objection with the SEBI. The Tribunal had asked SEBI to decide the matter in four weeks.
The independent valuation report from a Category 1 merchant banker engaged by a large mutual fund has derived an open offer value of ₹820 a share for FMG, the sources said. Two other reports of chartered accountants have derived a fair value of ₹920 and ₹1,150 a share, they added.
The new valuation reports say that since FMG was an Indian subsidiary of Tenneco, it should be compared only with listed technology providers in the auto components sector in India such as Bosch, SKF, Timken and Wabco. Earlier, Haribhakthi and Company had compared valuation of FMG with multinational companies along with domestic ones, the sources said.
SEBI’s final decision in the matter is expected shortly. The regulator did not respond to an email query.