Mumbai: Sugar manufacturer EID Parry will acquire a 20% stake in GMR Industries in a open offer beginning 18 June.
Under the open offer, EID Parry would acquire up to 39.92 lakh equity shares of GMR Industries, representing a 20% stake, for Rs110.69 per share, aggregating to Rs44.19 crore, GMR Industries said in a filing to the Bombay Stock Exchange on Tuesday.
The proposed offer would open on 18 June and close on 7 July 2010.
On Saturday, EID Parry had entered into a definite agreement with GMR Holdings Pvt Ltd to acquire a minimum 65% equity in GMR Industries.
As per the December quarter shareholding pattern available with the BSE, GMR Holdings Pvt Ltd held 1.49 crore shares, or 74.84% shareholding, in GMR Industries.
Post the open offer, GMR Group would become a minority shareholder in the company.
EID Parry, which is part of Chennai-based Murugappa Group, is a dominant player in the sugar industry and also has interests in bio-pesticides and nutraceuticals.
GMR Industries owns and operates three fully integrated sugar complexes in Andhra Pradesh and Karnataka.
The deal would mark EID Parry’s entry into Andhra Pradesh and also consolidate its position as a leading sugar manufacturer in cane rich areas of north Karnataka.