Calcutta, Sept. 22: Tide Water Oil, the government-owned lubricant maker, has received an audacious takeover call from a private firm seeking to establish itself as the promoter of the company.

Mumbai-based lubricant maker Standard Greases and Specialties, acting in concert with Tata Capital and one more firm, announced the offer to acquire up to a 26 per cent stake in Tide Water, which is based in Calcutta and is controlled by public sector Andrew Yule.

The open offer has been priced at Rs 16,632 per share, which aggregates to a total consideration of Rs 376.73 crore. The offer price, however, is below the market price of the Tide Water Oil share, which closed at Rs 17,046 apiece on the Bombay Stock Exchange today.

Standard Greases already holds a 23.24 per cent stake in Tide Water, while Janus Consolidated Finance Private Ltd, person acting in concert, holds 1.69 per cent.

Both companies, headed by Vinod S Vyas and Durgesh Chandravarkar, joined hands with investment firms Tata Capital Growth Fund - I and Alpha TC Holdings Pte Ltd for the offer. Tata Capital does not own any share in the firm.

Reacting to the development - the announcement came after market hours - the Yule management exuded confidence that the open offer would not make any material impact on its control over the firm.

"There was always the apprehension of an open offer in Tide Water Oil. But we are not worried. The Andrew Yule group together with public sector undertakings such as LIC and United India and employee welfare trust holds close to 40 per cent together. So we are confident that the company would retain its current ownership," said Kallol Dutta, chairman of Andrew Yule and Tide Water.

Andrew Yule is the current promoter with a 26.22 per cent stake, while the Life Insurance Corporation of India and United India Insurance hold 4.22 per cent and 6.88 per cent, respectively. Tide Water Oil's employee welfare trust owns 2.6 per cent of the company.

These institutions have never acted against the interest of the government in past situations like this.

The acquirer and Janus collectively hold 217,234 fully paid-up shares of the target company (Tide Water Oil), representing 24.935 per cent of its voting share capital, a statement by Tide Water Oil said.

"While there is no underlying transaction, the offer is being made under regulation 3(1) and regulation 4 of Sebi (SAST) regulations pursuant to the decision of the acquirer to increase its shareholding in the target company, by making the open offer for 26 per cent of voting share capital, and to classify the acquirer as promoter of the target company in accordance with provisions of regulation 31A(8) of the Sebi regulations," it said.

Sources said Standard Grease had picked up the stake when Chevron exited Tide Water Oil.

Tide Water Oil Company of the US, which had a 22 per cent stake in Tide Water Oil India, was sold to Getty Oil and then to Chevron Texaco, which held the shares through Four Star Oil and Gas Company.

Corporate insiders say Standard Greases might be trying to consolidate its holding in Tide Water to get a board position and a say in management decisions.

"There is hardly any chance that it would get much shares. Tide Water is an extremely thinly traded stock. The real motive may be consolidation of scattered holding," they said.