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TVS group may lose control in Wheels India, if Titan International group receives full response to its open offer to the public shareholders of the auto ancillary company.
Titan Europe Plc along with Titan International Inc has made an open offer to buy 14.38 per cent stake in TVS group company Wheels India for about Rs 103 crore.
Holds 35.91% now
The company has informed the BSE that it will acquire 14.19 lakh equity shares (face value Rs 10 each) of Wheels India, at an offer price of Rs 725.38 a share.
Titan Europe already holds 35.91 per cent (35.44 lakh shares) in Wheels India. The open offer for public shareholders is being made following foreign promoter Titan International’s acquisition of Titan Europe Plc.
If the foreign promoters succeed in mopping up the entire public shares, TVS group will lose control over Wheels India, as foreign promoter’s stake could rise to 50.29 per cent.
Indirect route
As against this, TVS group through T.V. Sundram Iyengar & Sons Ltd, Sundaram Finance Ltd and Southern Roadways Ltd held 49.7 per cent stake in the company, according to September 2012 shareholding pattern.
However, it would be interesting know how Reliance Mutual Fund, which holds 3.83 per cent stake, and 200 bodies corporate, which have 1.3 per cent stake, will respond to the offer.
ICICI Securities Ltd is the manager to the offer.
Since this open offer is being made as a result of indirect acquisition of shares/ control of the target company, the offer price shall be revised according to SEBI regulations; the revised price shall be included in the detailed public statement, said the announcement to the stock exchange. The offer price will be paid in cash.
Wheels India Managing Director, Srivats Ram, could not be reached for comments.
Wheels India share price was up 1.36 per cent on Thursday at Rs 740.10, on the BSE.
Titan Europe Plc is an international engineering group which designs and manufactures wheels, undercarriage components and assemblies for tracked and wheeled off-road vehicles.
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