Mumbai, February 27: Sandvik AB Sweden's open offer to acquire an additional stake of 20.41 per cent in Pune-based Sandvik Asia Limited (SAL) has met with over 90 per cent success. The purpose of the open offer was to raise Sandvik AB's stake in Sandvik Asia to 75 per cent, but the 10 per cent shortfall will result in the Swedish parent's stake rising to only 73 per cent, according to HSBC Capital Markets India Pvt Ltd, managers to the issue.
The shareholding of the Swedish global giant in materials technology enginnering in Sandvik Asia prior to the offering was 54.59 per cent, with the rest being held by institutional and individual shareholders. The offer by Sandvik AB made at Rs 1,800 per share attracted a subscription of over 90 per cent totalling US$ 17 million. The figure being so close to the target indicates that the pricing was `optimum'. The operation of Sandvik AB group spans 130 countries with over 200 subsidiaries/associate companies and the group turnover in 1996 was Swedish kronar 28billion (approximately Rs 14,800 crore). With Sandvik Sweden managing to acquire only 73 per cent stake, it is not clear whether the Swedish company will introduce its proprietary technology and knowhow to Sandvik Asia. Sandvik AB Sweden operates throughout the world with near full control of its subsidiaries in order to project the considerable investments it has made in its proprietary technology and knowhow. This is why the Swedish companyn wanted to have at least 75 per cent control over Sandvik Asia.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
