| With Dutch paint maker Akzo Nobel giving the nod today for the $16 billion global takeover of ICI, Akzo is expected to make an open offer of 20 per cent to the shareholders of ICI India. India’s largest paint maker Asian Paints also holds a 9.2 per cent stake in ICI India. |
| According to the Securities and Exchange Board of India (Sebi) regulations, a company, which intends to buy shares that would entitle it to exercise 15 per cent or more voting rights, has to make an open offer for at least an additional 20 per cent shares of the target company. The open offer will be priced on the average 26-week price or the average of the daily high and low prices, two weeks prior to the date of announcing the offer. |
| In case the shares of the target company are not frequently traded, then the pricing parameters for the open offer will be based on the fundamentals of the company such as returns on the net worth of the company, book value per share, EPS and so on. |
| Akzo executives from Amsterdam refused to comment on India specific initiatives, citing it was too early to comment. |
| In India, the Akzo Nobel group comprises six business units and employs around 1,200 people across pharma, coatings and chemicals businesses. ICI India Director M R Rajaram said the acquisition formalities were expected to be completed only by late-December, after which the company would take up country-specific initiatives. ICI India also has an adhesives business worth Rs 100 crore, which is 11.76 per cent of the company’s total business of Rs 850 crore. However, ICI India executives did not comment if the adhesives business would be spun off into a separate segment before the open offer. |
Source: Business Standard