Luxottica revises offer for RayBan

Italy-based Luxottica Group has made a revised offer to buy an additional 10.82 per cent stake, or 2.65 million shares, in RayBan Sun Optics India.

However, the offer price of Rs 104 a share of RayBan payable in cash to existing shareholders will remain unchanged from the earlier offer made in January.

Under the revised offer, the acquirer aims to increase the size of the offer to around 7.55 million shares, representing 30.82 per cent in RayBan Sun Optics, from 4.9 million shares, representing 20 per cent, earlier.

Under the revised offer, for continuing shareholders (who continue to hold RayBan shares from Aug 27, 1999) the offer price of Rs 185.25 a share (comprising of the offer price of Rs104.3 per equity share and interest of Rs 80.95 per equity share) payable in cash will also remain unchanged.

The acquirer currently holds 44.15 per cent stake in RayBan via its 100 per cent subsidiary, Ray Ban Indian Holdings Inc.

Luxottica had entered into an agreement with Bausch & Lomb Inc. to buy the latter's eyewear business on April 28, 1999.

The global buyout meant that Bausch & Lomb's 44.15 per cent stake in RayBan Sun Optics was transferred to RayBan Indian Holdings.

Following the transfer, the Securities and Exchange Board of India had directed Luxottica to make an open offer to buy additional 20 per cent stake.

Under Sebi rules, an open offer is mandatory if an acquirer buys over 15 per cent in another company.

However, the company had contended that the stake was transferred to it as part of global agreement, and was not a domestic acquisition.

Luxottica had approached the Securities Appellate Tribunal against the order, which also directed it to make an open offer.

The appeal was also negated by the Supreme Court in December, which directed Luxottica to take April 28, 1999, as the date for calculating the offer price.

The court also asked the acquirer to pay an interest of 10 per cent to those who continue to hold RayBan shares since August 27, 1999. .