The offer will be made to minority shareholders possessing around 24 lakh shares in all. KPNV, the parent company that currently holds 96.5 per cent stake in Philips. India, will also offer 6,68,0768 equity shares, which constitute 9.5 per cent of the issued share capital of the company, at the same price. Philips India will spend Rs 180 crore on the buyback offer from its reserves of Rs 605 crore.
"It is not an attempt to make Philips India a 100 per cent subsidiary of its Dutch parent but to offer a fair price to its existing shareholders as the company has already been delisted from the bourses in the country after the promoters acquired more than 90 per cent shareholding after subsequent open offers post 2002 made to its shareholders," said Murali Sivaraman, vice-chairman and MD, Philips India.