Hindalco to resume its open offer for stake in Indal
Offer closes on November 12
Hindalco Industries is to resume its open offer to acquire the remaining 25.5 per cent stake in group company Indal with the permission of market regulator Sebi. The resumed open offer, made at Rs. 120 per share, opened on October 14 and closes on November 12.
In September Sebi had asked both Hindalco and its merchant bankers, DSP Merrill Lynch, not to go ahead with the offer. The open offer is part of Birla’s plan to consolidate their metal business. The offer will entail an expenditure of Rs. 2.18 billion. Hindalco currently has a 74.5 per cent stake in Indal.
Once the offer is entirely subscribed, the Aditya Birla group would get Indal delisted. The intention is to make Indal a fully-owned subsidiary and thereby avoid any conflict of interest between the shareholders of Indal and Hindalco.
