Hyderabad, Aug 25: Having hived off its aerated drinks business to Bharat Coke, the Hyderabad Bottling Company (HBC) has turned its attention to the textile sector, and has made an open offer to acquire 20 per cent shares of the ailing Kakatiya Textiles Ltd (KTL).The offer from the promoter directors, JS Krishnamurthy, J Seshagiri Rao and JV Choudary, of the company for acquiring the 11,62,200 equity shares is at a price of Rs 5 per share. The offer, managed by Nagarjuna Finance, will open on October 21 for which HBC has opened an escrow account with the State Bank of India for an amount of Rs 15 lakh.
According to the offer document, HBC has identified textiles as a major thrust area after its divestment of the soft drinks business to Bharat Coke. The offer document states that the company does not intend to dispose of any assets of the KTL in the next two years and would seek to turn around the textile company.
HBC has already bought 30.05 per cent from the promoters of KTL at Rs 5 per share. Another group company JSK Holdings Pvt Ltd holds a 4.94 per cent stake in KTL which has a paid-up capital of 57,68,000 equity shares of Rs 10 each.
HBC has diversified into electronics, advertising, transportation and distribution and finance with a group turnover of Rs 75 crore as of March 31, 1998.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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