US air-conditioning giant Carrier, which owns 51 per cent of its Indian subsidiary, Carrier Aircon Ltd, today announced an open offer for the remaining 49 per cent shares, at an offer price of Rs 100 each.
The company has informed the stock exchanges that Carrier International Mauritius Ltd, along with the US parent, Carrier Corporation, Delaware, US, and Carrier Singapore (Pte) Ltd are in concert making a voluntary offer to the public shareholders of Carrier Aircon to acquire up to 1,14,77,583 fully paid up equity shares of Rs 10 each, representing 49 per cent of the paid-up share capital.
On news of the open offer, the Carrier Aircon scrip hit the circuit-breaker at the Bombay Stock Exchange (BSE), to close at Rs 73.80.
The scrip, which opened 7.7 per cent higher today, jumped 15.9 per cent by noon to Rs 73.80 on heavy volumes of over 94,000 shares, even as the 30-share Sensex remained largely unchanged.
The scrip is presently quoting around 32 per cent below its 52-week high of Rs 111.30 on February 9, but it is still 58.2 per cent above its low of Rs 46.65 on April 30, 2001.
According to the notice to the exchange, the offer would open on July 2 and close on July 31, 2001. The specified date for the open offer has been fixed at May 16, 2001. The price of Rs 100 per share will be payable in cash. The open offer is not conditional on any minimum level of acceptance.
Simultaneously, in Delhi, the company today also moved the Foreign Investment Promotion Board (FIPB) to seek a mandatory approval for FDI infusion by the consortium-acquirer. The proposal may be considered this week, an official said.
Carrier Aircon managing director Anil K. Srivastava told Business Standard that the scheme has been planned entirely by the US parent, which had also appointed DSP Meryll Lynch as manager.
The existing share capital of the company is Rs 23.42 crore ($4.98 million), of which 51 per cent is held by Carrier Corporation and the remaining widely held by public and financial institutions.
On successful completion of the open offer, Carrier Aircon will be delisted from the stock exchanges, Srivastava added.
Analysts pointed out that the parent's offer price of Rs 100 would still represent a 27 per cent high from the current levels.
Industry observers said that from a shareholder's perspective, the open offer is attractive since the domestic air conditioner market after many years is showing tremendous growth and poses a lucrative business despite the large number of players in it.
Despite recent drop in sales, the airconditioner market has been growing steadily at around 25-30 per cent, though Carrier itself has been edged out as the number one player by fresh competition in the window AC segment. It is, however, still the leading player in the high-end and industrial segment.
