Lipton India Exports Ltd (LIEL), a 100 per cent subsidiary of Hindustan Lever Ltd (HLL), has initiated steps to delist Rossell Industries Ltd from the exchanges.
The promoter's holding in the company stands at 95.89 per cent, following LIEL raising its stake in Rossell to 59.62 per cent and Unilever Overseas Holdings BV (UOH), a wholly owned subsidiary of Unilever PLC, having a 36.56 per cent stake. LIEL's holding in Rossell stood at 53.06 per cent last year.
Under the Securities and Exchange Board of India (Sebi) rules, if promoter's holding exceeds 90 per cent then the stock can be delisted from the bourses unless the promoter seeks time to dilute holding. Rossell is listed on Mumbai, Kolkata, Delhi, Guwahati and the National Stock Exchange (NSE).
More From This Section
At the end of 1999, UOH had entered into an agreement with Rossell Estates Limited and Jokai Tea Holdings pursuant to which UOH had acquired 36.56 per cent of Rossell.
UOH also proposed to acquire a further 28.47 per cent of Rossell's equity from Y K Modi and his associated subject to and conditional upon securing the necessary approvals from the Foreign Investment Promotion Board or other appropriate central government authority to acquire up to 74 per cent of the issued and subscribed capital of Rossell.
Accordingly, in compliance with the requirements of Sebi substantial acquisition of shares and takeovers (SAST) regulations, 1997, UOH made an open offer to public shareholders of Rossell to acquire up to 34.97 per cent of outstanding share capital of Rossell at Rs 173 a share, such that UOH would acquire shares tendered to the offer representing up to 9 per cent of the equity share capital and HLL and its subsidiaries for share tendered beyond 9 per cent.
However, as per the agreement, were UOH not to receive the necessary approvals, the shares would be acquired by HLL and its subsidiaries.
Pursuant to the open offer, shares representing 24.57 per cent were tendered over and above 28.47 per cent targeted shareholding. Meanwhile, the application pending with FIPB was finally withdrawn last year and the holding with LIEL stood at 53.06 per cent. The group's control on Rossell last year was at 89.62 per cent.