Mumbai, Aug. 7: Acordis BV and Acordis Overseas Investment BV will make an offer to acquire up to 20 per cent in Century Enka Limited at Rs 43.58 apiece. The stake would translate into buying 57.28 lakh shares.
Whether the offer, which ends the long spell of uncertainty for small investors of Century, succeeds will be known over the next few days. However, a back-of-the envelope calculation shows that the maximum price, inclusive of interest, will be around Rs 70.
The Century Enka share closed at Rs 93.40 after hitting an intra-day high of Rs 99 and an intra-day low of Rs 88. Analysts say there is no clue on the actual price that shareholders will get for parting with their shares.
Merchant banker J. M. Morgan Stanley, which is the manager to the issue, wrote to the Bombay Stock Exchange (BSE) on behalf of Acordis BV and Acordis Overseas Investment BV. It said that an interest of 15 per cent, from November 28, 1999 to December 5, 2003, would be paid to investors whose shares are accepted.
The offer, which will remain open from August 22 to November 5, is not subject to any minimum level of acceptance, the merchant banker said in its letter to the exchange.
The open offer came about after CVC Capital Partners, the acquirers of Akzo Nobelís stake in Century Enka, was asked by Sebi to make an open offer and pay interest at the rate of 15 per cent to shareholders.
The market regulator was swamped with complaints that alleged CVC Capital Partners acquired shares and, therefore, control of Century Enka, by snapping up Acordis from Akzo Nobel NV for Ä825 million.