Diana ben-Aaron, Bloomberg
Helsinki: Alfa Laval AB, the world’s largest maker of heat exchangers used to cool liquids, raised its bid for shares of an Indian unit it doesn’t already own by 49% as it seeks to tap demand in the world’s second-fastest growing economy.
The Swedish company currently holds 64% of Alfa Laval (India) Ltd, and aims to buy a further 26% for Rs1,300 a share, or Rs610 crore, chief financial officer Thomas Thuresson said on 16 May 2007.
Alfa wants to increase its holding in the Indian division to just short of 90% to win control of the business without de-listing it, Thuresson said. The company initially bid Rs875 a share for the holding on 26 February and said on 17 April that it wouldn’t increase the offer.
Alfa Laval, which also owns an engineering subsidiary in India, started its operations in India in 1937. Its offer, aimed at about 11,000 investors, runs until 26 May. Five investors hold about 16% of the total shares, the Swedish company said in a statement on the Cision newswire.
“We have chosen this route rather than delisting because we think we owe it to the minority shareholders to give them the opportunity to realize their investment,” Thuresson said.
Shares of Alfa Laval (India) rose as much as Rs208.2, or 19.9%, to Rs1,253, and were trading at Rs1,232.85 as of 4:48 pm in Mumbai, giving the company a market value of Rs2,240 crore.