Prominent industrialists from Andhra Pradesh yesterday said they would support the promoters of Raasi Cements (RCL) morally, ethically and financially in fighting out the hostile takeover bid by India Cements .
We will extend all help to Raasi promoters to thwart the hostile takeover bid by ICL and have worked out a strategy to that effect, the industrialists led by K Anji Reddy of Dr Reddys group said. The industrialists decision to support Raasi Cements came after ICL had acquired 20 per cent stake through negotiated deals and had made an open bid to acquire further stake in Raasi at Rs 300 per share, a 70 per cent premium over the prevailing market price.
The industrialists maintained they would ask the two financial institutions, UTI and LIC, which hold about 13 % equity, to download the stock in favour of Raasi besides taking other measures.
The industrialists, Krishnam Raju (Suchitra Group), Rahul Raju (Nagarjuna Group), Nrupender Rao (Pennar Group), N K Aggarwal (TCI), M B Raju (DCL Group), Ramlinga Raju (Satyam Computers) and Kunjita-padan (Technical director, Raasi Cem-ents) said they would find a way out to thwart ICL bid and acquire the required 51 % holding for Raasi.
The industrialists would also meet Andhra Pradesh chief minister N Chandrababu Naidu and apprise him of the situation and role played by the State Industrial Development Corporation (APIDC), which disinvested a substantial number of shares further compounding the crisis.
We will also request the chief minister and send a representation to the finance ministry to take steps to discourage such raids, they said adding that Raasi would acquire the required equity if they convince financial institutions to download in favour of Raasi.
