The company will purchase about 20 per cent of the fully paid-up equity share capital of Orient Cerwool Ltd at an offer price of Rs 120 per fully paid equity share, to be paid in cash. The offer will open on February 3, 1999 and shall close on March 5, 1999.

Carbondunum had entered into a shares sale and purchase agreement with OCL on December 16, 1998. Under the agreement the Rajgarhia group had agreed to sell to Carbondunum or its nominees shares so as to step up the acquirer's stake to about 51 per cent of the share capital of OCL.

According to a notice filed with the Bombay Stock Exchange, Carborundum is making this investment in OCL with the objective of picking up controlling stake in the company. This is a part of the company's strategy to develop its geographical position worlwide.

However, the minimumnumber of shares to be sold by the Rajgarhia group to the acquirer would be 7,70,000 equity shares of OCL being 38.96 per cent of the share capital of OCL.

The offer to acquire shares from the equity shareholders of OCL will be made at an offer price of Rs 120 per fully paid equity share to be paid in cash.

The share capital of OCL is Rs 1.99 crore and the earning per share is Rs 12.06. The total reserves of the OCL stand at Rs 5.63 crore. The total shareholders of the company is about Rs 7.62 crore. The secured loans of the company aggregate about Rs 2.47 crore, and unsecured loans stand at Rs 86 crore. The total debt of the company stands at Rs 3.33 crore while the total liabilities of OCL stand at Rs 10.95 crore.

Carbodunum was incorporated as Longyear (UK) Ltd under the laws of England and Wales on June 30, 1967 after subsequent changes of its name it now stands incorporates under the name of The Caborundum Company Ltd having its registered office at Mill Lane at Rainford in England.

Carbondunumis part of the Industrial Ceramics branch which specialises in the production of ceramic fibre and refractories.

The ceramic business of Saint Gobain has five other manufacturing units, two of which are located in France and one each in Germany, Brazil and Australia. It is present world-wide through a network of subsidiaries, agents and distributors.