| Upward bound
Mumbai, Sept. 2: Otis Elevator Company today announced the second open offer to acquire 20 per cent of the equity in its Indian arm at Rs 320 each. The price marks a premium of 14 per cent on its previous offer.
DSP Merrill Lynch, the firmís merchant banker, told exchanges that Otis Mauritius, Otis Elevator Company of New Jersey, Otis Elevator Company (S) Pte. and Otis Elevator Company (HK) will make an offer to investors of Otis Elevator Company India to acquire up to 24,30,823 fully paid-up equity shares. That represents 19.38 per cent of the firmís share capital, and the only portion that remains with the public. The offer will remain open between October 18 and November 16.
Otis Mauritius, Otis NJ and Otis Singapore hold 14,70,655 (11.73 per cent), 56,44,800 (45.01 per cent) and 29,95,810 (23.89 per cent) shares. That adds up to 10,111,265 shares, or 80.62 per cent of Otis Indiaís equity. Earlier, the parent said it wanted to pick up a 31.1 per cent stake in Otis India at a price of Rs 280 apiece.
Otis, the largest manufacturer of lifts and escalators in the country, was set up as a joint venture between Mahindra & Mahindra and Otis Elevator Company. While the US company held a 45 per cent stake, the Mahindras controlled around 24 per cent.
In July 1999, the Mahindras sold their holding in Otis India as part of a plan to pull out from non-core businesses. They sold their stake at Rs 375 each in a Rs 112-crore deal.
In its first offer, the parent of Otis had acquired 39.01 lakh shares of its subsidiary.
The second such offer by Otis follows a similar move in Carrier Aircon (United Technologies is the principal parent of both Otis and Carrier Aircon).
Carrier Corporation of the US came out with a second open offer to lift around 14 per cent of Carrier Aircon Ltd at a price of Rs 100 per share.