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Chandra kin offer for Asian Sky parent

Anusha Subramanian

Kavita Goel, a member of the Subhash Chandra family, has made an open offer of up to 20 per cent to acquire the New Delhi-based Metropolitan Leasing, owners of the home shopping network, Asian Sky Shop.

The open offer at Rs 22 a share is far higher than the last traded price of Metropolitan at Rs 7.60 on the Delhi Stock Exchange. In a public announcement, Goel's merchant bankers have informed that the price is based on Metropolitan's book value of Rs 21.27.

The open offer is being made by Goel subsequent to an agreement to buy out Binod Kumar Joshi and associates, who together hold 45 per cent of Metropolitan's equity, at Rs 8 a share.

The Goel family does not hold any shares in Metropolitan, and have said the purpose of the acquisition was "to cash in on the Asian Sky Shop brand owned by the target company by introducing more products in its range."

Metropolitan was incorporated with the objective of conducting business in finance and trading, but it later ventured into homeshopping through a division called Asian Sky Shop. Today, Asian Sky Shop is one of its main businesses.

Goel said she intends to take control of the management of Metropolitan and strengthen its holding through acquisition of the shares. Industry sources said that Asian Sky Shop is aired on Zee TV, the channel owned by the Subhash Chandra family.

Metropolitan clocked sales of Rs 68 million for the year ending March 31, 2000 and net profit of Rs 3.3 million. For the first nine months of 2000-01, the company posted a net profit of Rs 2.4 million on a turnover of Rs 51 million.

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