MUMBAI, April 7: Saurashtra Cement, which is facing a takeover threat, has informed the BSE that Dutch corporate major, F L Smidth, has bought five per cent equity in the company. It also said it has hiked the firm's issued capital from Rs 12.15 crore to Rs 47 crore through a preference share issue. The company was targeted by the Mumbai-based Autoriders for takeover and an open offer was made recently. The communication to the BSE says that five per cent stake has been issued on a preferential basis to F L Smidth and an offshore fund, Industrialisation Fund for Developing Countries. The two have been issued 19,05,300 shares each.The fresh issue of shares was made after the company's board of directors cleared the preferential allotment on March 11, just a week before the Autoriders group had formally made an open offer for a 20 per cent stake in Saurashtra Cement at a rate of Rs 70 each share. A bulk of the preference share have been allotted to the present promoters, thus strengthening their grip overthe company.
It may be recalled that the Patels of Autoriders group have purchased 9.5 per cent of Saurashtra's equity on March 2, and subsequently an open offer for the public was made.
Though the company has informed the BSE about the equity placement to the overseas investors on Tuesday, the exchange is not yet very clear on whether full information had been intimated about preferential allotment of a bulk of the new shares to the promoters.
Saurashtra Cements has said the company has adhered to all necessary regulations but refused to divulge more details saying that it was a "sub-judice matter." However according to Autoriders, the allotment was in violation of the takeover code as the Sebi was not informed about the recipients of the equity shares until April 7.
Saurashtra has intimated the BSE about the foreign entrants into the company's equity base, pursuant to bylaw 11 (3) of the Sebi Takeover Code.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
