Tata Sons to make open offer for 28% stake in TICL

Tata Sons to make open offer for 28% stake in TICL
PTI
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First Published: Mon, Sep 17 2007. 04 19 PM IST
Updated: Mon, Sep 17 2007. 04 19 PM IST
Mumbai: Tata Sons Ltd, promoter of all key companies of the Tata group, will make an open offer to the shareholders of Tata Investment Corporation Ltd (TICL) for acquiring up to 28.39% stake in the company.
Tata Sons and other Tata companies hold 60.61% of TICL’s equity capital and the open offer is proposed to be made by Tata Sons alone to acquire up to 28.39% of the 39.39% stake held by public shareholders.
The offer would be made at Rs 600 per share which represents a premium of 33.33% over the September 14 closing price of Rs 450 on the Bombay Stock Exchange.
In a filing on the Bombay Stock Exchange, TICL clarified that the acquisition would not result in de-listing of the company’s shares from the exchange.
TICL, on September 14, received a letter from Tata Sons stating its intention to make an open offer to the public shareholders of the company under the relevant Sebi regulations.
This price is also higher than the minimum price of Rs 439 computed on the basis of the relevant Sebi pricing formula under the regulations.
Shares of TICL on 17September hit the upper circuit limit and were trading at Rs 540.10, up 20% on BSE in late afternoon trade.
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First Published: Mon, Sep 17 2007. 04 19 PM IST