Chennai, June 30: The board of directors of Carborundum Universal (Cumi) which met on June 30, 2000 approved a proposal to buy-back the equity shares of the company in line with Section 77A of the Companies Act, 1956 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations 1998. The approval is subject to shareholders approval at the annual general meeting (AGM) to be held on July 26.The buy-back will provide an opportunity to realise a fair value, the proposal says. According to a company release, some of the proposal's salient features will include the adoption of the `tender offer method' to buy back its shares on a proportionate basis from existing shareholders (excluding promoters).
The proposal also stipulates that an amount of Rs 31.83 lakh (25 per cent of share capital and free reserves) will be earmarked for the buy-back programme. The same is proposed to be financed from internally generated funds. The buy-back is proposed to be made at a price not exceeding Rs 115 per share (face value per share is Rs 10). In addition, a maximum of 23 per cent of the company's aggregate paid-up equity share capital is proposed to be bought back. The proposal also states that promoters will not tender their shares to the company for the buy-back and that the buy-back will be completed within 12 months from the date of the AGM.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.