Hyderabad-based Rain Commodities today said its wholly-owned subsidiaries - Rain USA and Rain Canada - have decided not to exercise their right to match rival bidder Oxbow's proposal of C$14.00 per unit for acquiring the assets of the Toronto-based Great Lakes Carbon Income Fund.GLC Income Fund is a trust established to hold, indirectly, the securities of GLC Carbon USA Inc, the world's largest producer of both anode and industrial grade calcined petroleum coke."Considering that the latest Oxbow proposal of C$14.00 per unit is 20% higher than the effective per unit price of C$11.60 set forth in the agreement with the fund notified on February 5, and keeping in view the impact on the shareholder value, Rain USA and Rain Canada have opted not to exercise their right to match the Oxbow proposal and have notified the fund to that effect," Rain Commodities informed the Bombay Stock Exchange today.Rain USA, however, retains the option to sell its indirect 20.22% stake in GLC Carbon USA Inc, acquired in March 2006, as the fund is required to ensure that US-based Oxbow makes an offer to each stockholder of GLC Carbon USA Inc to buy such equity interests, it added.Meanwhile, Rain Canada would be receiving a termination fee of C$17 million (Rs 64 crore) in cash from the fund prior to it actually entering into an agreement with Oxbow as required under the terms of its agreement with GLC Carbon Fund, it added.The fund would now enter into a definitive agreement with Oxbow after the termination fee has been paid and certain other requirements have been met.
