US giant GE's Rs 770-crore open offer to acquire publicly held shares in Alstom India is in compliance with Sebi norms, but shareholders should make "an informed decision" as offer price of Rs 440 is less than the trading price, Alstom's independent directors have said.
The Board of Directors of Alstom India had on November 9 last year constituted a committee of independent directors (IDC) to provide recommendations on the open offer by GE Energy Europe BV.
"IDC is of the opinion that the offer price (Rs 440.32 per share) to the public shareholders of the target company is in accordance with Sebi guidelines," Alstom India said in a regulatory filing.
The stock price on BSE and NSE was Rs 655.85 and Rs 654, respectively, at the close on Tuesday, which is more than the offer price.
"The shareholders should independently evaluate the offer and take informed decision in this regard," it said.
IDC, headed by Uddesh Kohli, had other members as K Vasudevan and Arun K Thiagarajan.
The US energy and healthcare giant General Electric Co (GE) made the open offer following its USD 16.9 billion bid to acquire the global energy assets of the French multinational company, Alstom.
Alstom has two listed entities in India with business interest in power generation and transportation (Alstom India) and transmission and distribution sector (Alstom T&D). The French parent owns 68.56 per cent in Alstom India and 75 per cent in Alstom T&D.
GE has made the open offer to buy all the publicly held shares in both the companies.
Alstom India closed at Rs 640.40 on BSE today.
GE has made the open offer to acquire 6.4 crore shares representing 25 per cent stake in Alstom T&D India Ltd for Rs Rs 300.98 per share, aggregating Rs 1,926 crore.
The offer will open on January 18 and close on February 1.
