Kodak of UK is making an open offer to shareholders of Kodak India, its Indian subsidiary, to acquire 28.23 lakh shares at Rs 350 a share (Rs 10 each) in cash, paving the way for delisting.
The total outgo for acquiring the outstanding 25.24 per cent stake by Kodak is Rs 98.81 crore and the whole of Kodak India is valued at Rs 391.51 crore. Financial institutions including UTI hold around 6 per cent, while the balance is held by the public.
Commenting on the transaction, Peter Blackwell, managing director of Kodak UK said, "India is a key market for the group and an important part of the group's growth strategy. This transaction not only provides opportunities for value creation through closer integration of our Kodak India business within the Group, but is consistent with our aim of owning 100 per cent of our significant businesses around the world."
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The offer to acquire 25.24 per cent stake would open on September 10 and close on October 9. JM Morgan Stanley has been appointed as the advisor to the transaction.
Kodak UK holds 83.62 lakh equity shares, representing 74.76 per cent of the issued equity share capital of the Indian company.
Kodak India, previously called the India Photographic Company was incorporated in 1973. It was promoted as an undertaking of Kodak, UK, a wholly owned subsidiary of Eastman Kodak Company, US.
Kodak India is the only subsidiary of Eastman Kodak which is listed on the bourses. The US company is listed on the New York Stock exchange.
Kodak India is engaged in the manufacture, trading and marketing of cameras, films, photochemicals and other imaging products and is one of the leading companies in the photographic and allied products industry in India.
The company reported a total income and profit after tax for the year ended December 31, 2001 were Rs 735.60 crore and Rs 21 crore respectively.