Yokogawa offers Rs 380/shr to delist Indian unit

Yokogawa Electric Corporation (YEC) is planning to delist its Indian arm Yokogawa India. The Japanese-headquartered transnational currentlty holds 83.19%, and has proposed to acquire the remaining 16.81%. The stock gained nearly 9% to close at Rs 413 today.

The parent firm has proposed a price of Rs 320 to shareholders for tendering their stock, and is willing to go up to Rs 380 - which is an 18% premium to the 26-week average price up to December 15.

According to a statement from Yokogawa India, shareholders may tender shares at any price at or above the 'Floor Price' (i.e. 26 weeks average of the traded price), arrived at in terms of Delisting guidelines, which is approximately Rs 320. 

"Yokogawa Electric is prepared to acquire the shares tendered to it at a maximum price of Rs 380 per share, subject to all regulatory and shareholders approval being obtained for the delisting process. This is about 18% premium to the "26 weeks average price up to 15th of December"," the company added. 

The company reserves the right not to acquire the shares tendered if the exit price determined in accordance with the delisting guidelines is more than Rs 380 per share, the statement added.

Yokogawa India is a Rs 300-crore firm providing process automation systems and products and has positioned itself as a  solutions provider of enterprise technology solutions (ETS). Established in 1987, Yokogawa India has set up a global engineering centre and manufacturing centre in Bangalore.