Koninklijke Philips Electronics, the Dutch parent of Punjab Anand Lamp Industries (PALI), has decided to make a second open offer and buy out all outstanding equity shares of the Indian subsidiary.
If the offer, at Rs 95 a share, is fully subscribed, PALI will become a wholly-owned subsidiary and cease to be listed on Indian bourses.
The parent, which along with Philips India held 74.5 per cent, had in November last year, made an open offer for entire outstanding equity at the same price, but managed to mop up only 8.12 per cent.
The second open offer would now stand revised at 15.93 lakh fully paid up equity shares of Rs 10 each, constituting 17.37 per cent, the entire balance outstanding equity share capital of PALI.
The parent currently holds 59.06 per cent, while Philips India holds another 23.5 per cent in PALI. Under the stock exchange listing rules, if 90 per cent stake is acquired by the promoters they can delist the company from the bourses.
A Philips India spokesperson said: "The revised open offer will provide all shareholders an opportunity to avail the exit option provided in view of the depressed market conditions." However, the earlier open offer was made with the intention to increase the group's holding to 100 per cent, he added.
"The objective is to provide more flexibility and greater commitment in terms of resources and technology in Punjab Anand," the spokesperson said.
DSP Merrill Lynch are the lead managers to the issue and the offer will open on June 29 and close on July 28. Shares of Punjab Anand jumped 7.32 per cent to Rs 92.40 against the previous close of Rs 86.10 yesterday.
Philips India stock rises
The Philips India stock has been heading northwards over the last week on expectations that the Dutch parent will make its third open offer to minority shareholders and buy out all outstanding shares from the market.
The scrip has been rising from Rs 54 on May 15 to Rs 83.45 today at the Bombay Stock Exchange (BSE) on such speculation. But the company management has declined the possibility of any such offer.
The Dutch parent now holds about 84 per cent in Philips India against the open offer for 100 per cent. Royal Philips Electronics, which held 51 per cent in Philips India prior to the open offers, first made an offer for hiking stake to 74 per cent and subsequently to 100 per cent.
