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After looking for four years into the complaint of GIC and other investors against India Star Mauritius for suppressing facts in its open offer for Garware Offshore Services (now known as Global Offshore Services), SEBI has lobbed the case to the Supreme Court. SEBI has not included Securities Appellate Tribunal (SAT) as a party in the case despite SAT on February 2 directing SEBI to hear the plea afresh and give a verdict within four months. The case will come up for hearing in the apex court on October 26.
In March 2008, India Star Mauritius had made an open offer to acquire 15 per cent in Garware Offshore Services at ₹234 after its holding breached the 20 per cent level upon conversion of the debentures they were holding. As a shareholder of the company, GIC did not offer to sell its stake in the open offer.
In 2011, GIC moved SAT pleading India Star Mauritius to make a fresh offer as some of the material facts were suppressed in the offer document made during the open offer. GIC had said it would have offered its shares if those facts were disclosed. SAT directed GIC to move SEBI.
In January 2012, GIC filed a written complaint with SEBI stating that India Star Mauritius has hidden the fact that its parent IndiaStar Fund LP was owned by Sycamore Management Corporation which was mandatory under the Substantial Acquisition of Shares and Takeovers Regulations, 1997 and under SEBI circular dated March 8, 2004.
GIC said the company did not disclose that Sycamore Ventures, a group company, had made investments in Indian infrastructure companies and in oil & gas. Moreover, the target company is also in oil and gas business, GIC said. It also claimed that the company’s Director, Ravi Pratap Singh’s stint at Sera Nova Inc, Dahava Resources and Silverline Technologies were not disclosed.
GIC, in its complaint, said that summary judgment was passed by a US Court against Sera Nova Inc for failure to make proper disclosures to the US Securities and Exchange Commission and Silverline Technologies was facing huge financial difficulties/ claims of over $18 million from various parties including Indian banks. The Canadian regulator had banned trading in the securities of Dahava Resources as it failed to comply with mandatory filing/disclosure requirement.
When contacted by BusinessLine , GIC declined to comment.
On Monday, the shares of Global Offshore Services closed at ₹12.15, down 6.9 per cent, on the BSE.
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