SC oks deal between UB & Chhabrias

Finalising a Rs 131 crore settlement between Chhabrias and Vijay Mallya's UB group over the latter's acquisition of liquor company Herbertsons, the supreme court today put its stamp of approval on the agreement between the parties, who were at loggerheads not so long ago.

Before approving the settlement, a bench comprising justice N Santosh Hegde and justice S B Sinha recorded the rider put by market regulator Sebi that the delisting guidelines have to be followed within the statutory six-month period of acquisition.

Sebi informed the court that it had taken up with the Bombay Stock Exchange and the National Stock Exchange of India as to whether any offer has been made under the delisting guidelines for acquisition of shares of Herbertsons.

While BSE has informed that no offer has been made by UB group company, NSE said securities of Herbertsons Ltd were permitted to trade on the NSE, the market regulator said.

It said the purchaser would have to make an offer under the delisting guidelines to the remaining public shareholders in accordance with the reverse book building procedure as specified in the guidelines.

"Once the delisting price is so determined, the difference between the original offer/competitive bid price and the delisting price, is available and if the delisting price works out higher than the open offer price, then as per clause 7(d), the shareholders whose shares were accepted in the open offer shall be paid the difference," it said.