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Colour Chem offer for arm

Mumbai, April 8: Colour Chem Ltd plans to make an open offer for up to 20 per cent in its affiliate company, Vanavil Dyes and Chemicals Ltd (VDCL).

Colour Chem currently holds close to 56.19 per cent in VDCL. Its decision follows the open offer made by EBITO Chemiebeteiligungen AG, along with Clariant International and Clariant AG (persons acting in concert), the company said in a communication to the stock exchanges.

The company will consequently make an offer for the principal amount with the same reference date as provided in Sebi/SAT orders for Colour Chem ó November 21, 1997. With regard to the interest payment, the company said that it will await for the Supreme Courtís verdict.

Colour Chem also said it is in an advanced stage of preparation and intends to make the public announcement on or about April 18.

On Monday, EBITO Chemiebeteiligungen AG, a wholly-owned subsidiary of Clariant International, which is in turn an arm of Clariant AG, made an open offer to acquire up to 23,30,000 fully paid-up equity shares of Rs 10 each, representing 20 per cent of the paid-up equity share capital of Colour Chem, at Rs 318 per share.

VDCL was promoted by the Tamil Nadu Industrial Development Corporation (Tidco) jointly with the Tamil Nadu Handloom Weavers Co-operative Society (Co-optex). Colour Chem joined as a co-promoter in 1982. During 1990, Tidco and Co-optex disinvested their shareholdings in VDCL (except for 1,000 shares retained by Tidco) in favour of Colour Chem, thus increasing its share to 50.96 per cent.

The announcement led to the Vanavil scrip flaring up in the exchanges today. Opening at Rs 38.45, the scrip shot to a dayís high of Rs 43, to close at Rs 41.05.

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