The Tata group has divested 6.77 per cent of its 14.82 per cent holding in Forbes Gokak to the Pallonji Mistry group at a price of Rs 80 per share.
With this, the Tata group's direct holding in the textiles, engineering and appliances company has dropped to 8.05 per cent, and that of the present promoter group (the Tata group is a joint promoter of the company), to 18.29 per cent from the current 25.06 per cent.
The Pallonji Mistry group's stake in Forbes Gokak has gone up to 14.88 per cent.
KC Mehra, deputy chairman and managing director of Forbes Gokak, confirmed that Pallonji Mistry had bought 6.77 per cent of Forbes Gokak's equity and added that "we will be making an open offer for 20 per cent as per the SEBI guidelines".
The Pallonji Mistry group has agreed to make an open offer for acquiring an additional 20 per cent in the company, again at Rs 80, which is 57 per cent higher than the closing price of the company's scrip of Rs 50.80 on Monday, when the deal was struck.
The group has voluntarily agreed to an open offer, although its current stake is less than 15 per cent in the company. As per SEBI regulations, an open offer is mandatory only when a non-promoter group acquires 15 per cent or more in a publicly listed company.
From the Tata group, Tata Sons, Ewart Investments and Bambino Investments have divested their entire holding, in addition to some shares held by Tata Investment Corporation. However, Tata Investment Corporation still has a 8.05 per cent stake in the company, "which will be divested later", the Tata group said in a press release.
The Tata group's exit from Forbes comes in the wake of its differences on the company's business future with the present management of the company. While the management team wants the focus on textiles to continue, the Tata group did not. Forbes Gokak, with which the Tata group has shared a relationship spanning almost half a century, currently has 11 subsidiaries, with a presence in engineering, office equipment, consumer durables and shipping.
