Mumbai, Dec. 6: Clariant International has filed an appeal with the Securities Appellate Tribunal (SAT) against the Securities and Exchange Board of India (Sebi) directive asking it to make an open offer for shareholders of ColourChem Ltd.
ColourChem today informed the exchanges that Clariant International/EBITO Chemie-beteiligunen AG filed the appeal with the tribunal against Sebi’s October-16 order.
Sebi had directed the Swiss multinational to make an open offer for a 20 per cent stake to the shareholders of ColourChem. Sebi chairman G. N. Bajpai, had, in an order, directed Clariant International, the wholly-owned subsidiary of Clariant AG, to make the offer taking November 21, 1997 as the reference date for calculation of the offer price.
The regulator had also directed the Swiss multinational—which holds 50.1 per cent in the company—to pay interest at 15 per cent annually taking March 22, 1998 as the reference date.
“Since no public announcement for acquisition of shares of the target company (Colour-Chem) has been made, which has adversely affected the interests of shareholders of the target company, it would be just and equitable to direct the acquirer to pay interest at 15 per cent per annum on the offer price,” the Sebi chairman said in the order.
According to the reference date, the offer price worked out to around Rs 310-315 per share.
Based on the offer price and interest component, it was estimated that the total cost to Clariant International would be around Rs 125 crore.