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Alfa Laval to make open offer

Swedish engineering group Alfa Laval may make an open offer to buy a 20 per cent stake in Alfa Laval India, a business daily said on Monday.

This was because the shareholders of the Indian unit rejected a resolution for a change in control of management, it said.

Alfa Laval India's managing director Satish Tandon was quoted by Business Standard as saying there was no alternative but for Industri Kapital to make an open offer as the Indian unit's shareholders had not accepted a resolution to allow the change.

Alfa Laval India officials were not immediately available for comment.

The change in control results from the acquisition of Sweden's Alfa Laval, an unlisted company, by private equity company Industri Kapital last year.

India's takeover laws require a company, which acquires indirect control of another firm by buying 15 per cent or more of its shares, to make an open offer to other shareholders.

An exception is made when such an acquisition is approved by a shareholder's resolution.

Shares Alfa Laval India were eight percent higher at 150.10 rupees in early Monday deals at the Bombay Stock Exchange, while the Sensex was up 1.37 per cent.

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