Goodyear Orient Company has decided on a floor price of Rs 194 per equity share for the proposed acquisition and delisting of Goodyear India. The delisting offer would open on May 28 and close on June 3. Shares of Goodyear India are currently trading at Rs 351 on the Bombay Stock Exchange (BSE).
In a public announcement made on Friday, the acquirer Goodyear Orient Company has said that it intends to acquire up to 5.99 million equity shares, representing 26 per cent of the equity capital of Goodyear India.
While the acquirer currently holds no equity shares in the company, its parent organisation Goodyear Tire & Rubber Company (GTRC), holds 17.07 million equity shares, representing 74 per cent of the equity capital.
The minimum price per equity share payable by the acquirer for the shares it acquires pursuant to the delisting offer will be the price at which the maximum number of offer shares are tendered pursuant to a reverse book-building process.
Consequent to the delisting offer and upon the combined shareholding of GTRC and the acquirer reaching a minimum of 90 per cent of the equity capital and fulfilment of other conditions stipulated under the Delisting Regulations, the Goodyear India will seek to voluntarily delist the Equity shares from the Bombay Stock Exchange (BSE).
GTRC has also intimated the board of directors of Goodyear India that it is willing to acquire the offer shares at a price of Rs 245 (Indicative Price) per equity share.
"The indicative price should in no way be construed as either (a) a ceiling or maximum price for the purposes of acquisition under the reverse book-building process and the public shareholders are free to tender their equity shares at any price higher than the floor price," says the public announcement.
Citigroup Global Markets India Pvt Ltd is the manager to the delisting offer.
