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FE INVESTOR BUREAU
NEW DELHI, Sept 2: The shareholders of Kirloskar Computer Services, a Kirloskar group company, have got an exit option thanks to the open offer from Sri Vijaydurga Investments & Agencies Pvt Ltd at a 46 per cent premium to the market price. SVIAPL is making an offer to the shareholders of Kirloskar Computer Services for picking up 6.16 lakh shares at 46 per cent premium to the market price of Rs 12 as on June 26, 1998. This provides the shareholders an opportunity to offload the stock which is hardly traded on the Bangalore Stock Exchange. The stock is listed on the Bangalore Stock Exchange.
The offer, as per the takeover norms, follows a negotiated deal struck by SVIAPL for acquiring 44,000 shares (which constitutes 3.1 per cent) of Kirloskar Computer Services from K Lakshminarayana at a price of Rs 17.5.
Kirloskar Computer Services will be delisted from the Bangalore Stock Exchange if SVIAPL manages to acquire even 38-40 per cent. The Kirloskar group companies hold 53.54 per cent of the paid up capitalof of Kirloskar Computer Services. The total paid up capital of the company is Rs 1.42 crore.
Incorporated in June 1989, SVDPL is into investments and trading activities. Kirloskar Computer Services is into the business of trading of computer systems peripherals and associates, uninterrupted power supply, software and services, batteries and register and transfer agents. For fiscal 1998, KCSL has a total income of Rs 31.1 crore and net profit of Rs 70.7 lakh. The net profit margin stood at 2.48 per cent compared with 3.47 per cent in fiscal 1997.
SVDIAPL has made firm arrangements to meet the funding requirements for the offer. The funding has been arranged by borrowings from domestic corporate bodies. In accordance with Regulation 28 of the takeover code, SVDIAPL has created an escrow account in the form of bank guarantee from Centurion Bank in favour of DSP Merril Lynch for an amount of Rs 27 lakh which is more than 25 per cent of the money payable under the offer.
The record date of the offer isfixed as September 1. If the public holding falls below 10 per cent, the aquirer has to buyout the balance shares from the market in agreement the stock exchange. The offer opens on October 16, 1998 and closes on November 14. DSP Merril Lynch is acting as manager to the offer.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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