| The offer for 20 per cent of the paid-up equity share capital of Williamson Tea Assam is being made by McLeod Russel India, Williamson Magor & Company, United Machine Company, Ichamati Investments and Nitya Holdings & Properties. |
| ICICI Securities will manage the offer.The offer will open on August 1 and close on August 22. |
| The open offer price appeared to be below the expectation of investors. The Williamson Tea scrip today touched an intra-day high of Rs 149 and then closed at Rs 145.35 on the Bombay Stock Exchange (BSE). On the National Stock Exchange (NSE), the scrip closed at Rs 144.80 after touching an intra-day high of Rs 149.60. |
| The open offer price is higher than Khaitans' offer price of Rs 140 to Philip Magor. The agreed purchase price was Rs 140 per share with an additional Rs 30 per share fee for a "non-compete" arrangement in the Indian tea industry. |
| The acquisition has been effected through a buyout of 100 per cent share capital of Borelli Tea Holdings Limited, UK, from Williamson Tea Holding Plc, London, which in turn holds 70 per cent of Williamson Tea Assam. |
| If Khaitans manage to garner 20 per cent through the open offer, then the promoters' holding in Williamson Tea Assam will go up to 90 per cent. |
| According Sebi guidelines, if promoters' holding is 90 per cent, then it will be de-listed from the bourses. Khaitans had said after the deal that ICICI Securities was mandated to evaluate all options including a merger option with McLeod Russel. |
| The shareholding pattern filed with the stock exchanges indicated that institutional investors' holding in the company was 6.69 per cent, of private corporate bodies at 4.51 per cent, of the Indian public at 18.30 per cent and of NRIs/OCBs at 0.51 per cent. |
| McLeod Russel proposed to finance the acquisition through external borrowings and internal accruals. The company was in talks with various institutions and banks for the purpose. |
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