Fast moving consumer goods major Unilever group's holding in Rossell Industries, the erstwhile tea outfit of Y K Modi Holdings, has crossed 95 per cent following the second open offer to mop up all outstanding shares.
Under the stock exchange listing rules, if the promoters acquire 90 per cent in a company they can delist it from the bourses. Sources close to the company said Unilever, HLL and Lipton India Exports' combined shareholding now is around 97 per cent.
Sources said the second offer saw the promoters mop up over 6 per cent. The shares that are tendered pursuant to the current offer will also be acquired by Lipton India Exports, a 100 per cent subsidiary of HLL.
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M S Banga, chairman of HLL had earlier told Business Standard that, "If we are able to achieve 90 per cent in Rossell Industries through the open offer we will consider merging it with HLL or with Lipton India Exports at an appropriate time."
In October, HLL and Unilever Overseas Holdings BV, acting in concert with Lipton India Exports, had announced an open offer for acquiring the outstanding 10.38 per cent stake in Rossell Industries at Rs 120 a share.
At present, Unilever Overseas Holdings BV (UOH), a wholly owned subsidiary of Unilever Plc, and Lipton India Exports together hold 89.62 per cent in Rossell.
Unilever Overseas Holdings had, in December 1999, had acquired 37 lakh fully-paid up shares of Rs 10 each representing 36.56 per cent of the issued and subscribed capital of Rossell.
UOH also proposed to acquire 28.47 per cent stake of Rossell equity held by Y K Modi and his associates, subject to approval from FIPB to acquire up to 74 per cent stake in the company.
In compliance with the Securities and Exchange Board of India regulations, UOH made an open offer to public shareholders of Rossell to acquire 35.38 lakh shares, representing 34.97 per cent of share capital of Rossell at Rs 173 a share.
Pursuant to the open offer, 24.88 lakh shares, representing 24.59 per cent of Rossell's capital, were acquired. This was over and above the 28.47 per cent stake acquired from Modi.
Since the application submitted to FIPB on behalf of UOH continued to remain pending awaiting a final decision on foreign direct investment in plantation sector by the government, UOH finally withdrew the application in March 2001 after waiting for one year.
Consequently, 53.69 lakh shares of Rossell, representing 53.06 per cent of RIL's equity, were acquired through Lipton India Exports.