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Market regulator SEBI has allowed promoters of Fresenius Kabi Oncology to delist shares from the stock exchanges. It asked the company to complete the delisting process within three months.
However, the company should consider the October 2012 pre-offer-for-sale (OFS) of promoter holding to determine the minimum number of shares to be acquired for the delisting, the SEBI order said, ending a three-month dispute.
The regulator also made it clear that the restrictions on promoter dealings in the company’s shares would be reimposed if Fresnius Kabi failed to complete the delisting process in three months. Other restrictions on promoters and directors will continue till the delisting or till the 25 per cent public holding norm is reached.
The company had moved the Securities Appellate Tribunal after SEBI rejected the original delisting plan. SAT had directed Fresnius Kabi to file a fresh proposal with SEBI.
The Fresenius Kabi promoter, who held 90 per cent in the company, sold 9 per cent stake through an OFS window to comply with the minimum public shareholding norm of 25 per cent. That brought down the promoter’s holding to 81 per cent. The company then set a floor price of Rs 80 to dilute 1.42 crore shares in what was perceived as the first tranche of dilution.
Instead of selling further 6 per cent stake to meet the 25 per cent minimum public shareholding norm, the company changed tack and announced the delisting proposal.
However, SEBI said no to the delisting plan, as the company had benefited from a specially-designed OFS route to raise the public holding.
The company has been saying that its decision to get delisted was triggered by certain sudden ‘extraneous’ events.
Fresenius Kabi (Singapore) Pte Ltd in April had expressed its intention to pay an indicative price of up to Rs 130 a share to acquire the balance 19 per cent stake or 3 crore shares from public investors. On Monday, its stock closed at Rs 110.4, up 0.8 per cent.
Meanwhile, the healthcare services firm has also filed an application before the Foreign Investment Promotion Board to seek approval for its proposed delisting.
>badrinarayanan.ks@thehindu.co.in
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