A Turkish court has rejected Redington subsidiary Redington International Holdings' (RIHL) plea seeking a stay on market regulator CMB's directive with regard to a mandatory offer post its acquisition of Arena, a listed company in Istanbul.
"While the court has not yet decided on the merits of the case, it has now issued an order declining to accept RIHL's request for the stay. RIHL is taking steps to file an objection to this decision of the Court," Redington India informed the Bombay Stock Exchange (BSE) today.
Redington (India) Ltd along with its subsidiaries is in the business of end-to-end supply chain management of IT and non-IT products in different geographies.
In September 2011, RIHL acquired 49.4% stake in Turkey-based IT company Arena Bilgisayar Sanayi ve Ticaret for a value of $42.46 million (about Rs 194 crore at the prevailing exchange rate).
However, an investor challenged RIHL's move to buy stake in Arena without going in for mandatory tender offer (MTO).
After CMB turned down the investor's request, the investor approached a court - 13th Chamber of the Council of State. This court granted a stay of execution on CMB's decision to decline the request for an MTO.
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After the stay of execution, CMB issued a communication to RIHL asking it to either file an application for launching a MTO to acquire the balance Arena shares or make a request seeking exemption from making such a tender offer.
"...RIHL has also filed a petition seeking to join the case [along with the CMB] against the investor who had initiated the lawsuit," Redington said.
Shares of the company today closed at Rs 90.65 apiece on the BSE, up 0.5% over its previous close.