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July 19, 2001
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Money > Business Headlines > Report July 19, 2001 |
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Modis glean 35% MRL pie via offerBS Corporate Bureau The Modis are well on their way to acquiring a controlling stake in Modi Rubber. Bhupendra Kumar Modi on Wednesday said that the open offer by the Modi brothers for a 35 per cent stake in the company has been fully subscribed. "We understand from HSBC Securities (the manager to the offer) that we have got more than 35 per cent shareholding till now. It is because even the financial institutions have agreed to participate in the open offer after we finalised a deal with them. We, however, expect to get about 70 per cent shares. The final outcome would be known only by July 23 when the offer closes," B K Modi said. HSBC Securities executives, however, refused to comment on the matter and said that they would be in a position to know the final shareholding only when the offer closes on July 23. Meanwhile, sources said that the open offer has got fully subscribed shows that some financial institution has offloaded some shares. "Otherwise, it wouldn't be possible for the open offer to get fully subscribed," the sources said. The financial institutions are known to have reached an agreement to sell their 44 per cent stake in the company to the Modis at Rs 90 per share. By July 3, when the open offer was first slated to close, it had cornered 12-13 per cent shares. On Wednesday, Purnendu Chatterjee of The Chatterjee Group is also known to have sold his 12 per cent shares in the company. This took the tally to almost 25 per cent. The additional shares sold in the open offer are expected to be shares held by financial institutions. Sources said that they are led to believe that these are financial institutions' shares as there is very little floating stock left. In addition to the 44 per cent shares of the financial institutions, the Modis along with persons acting in concert have another 24 per cent and another 25 per cent are accounted for in the open offer. This leaves a floating stock of just seven per cent, which is not sufficient to take the subscription of the open offer from 25 per cent to 35 per cent. Powered by YOU MAY ALSO WANT TO READ:
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