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| TPG India's open offer for Shriram City to begin on Aug 27 |
| Press Trust of India / Mumbai Aug 25, 2009, 16:14 IST |
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Private equity firm TPG India Investments' open offer for a 20 per cent stake in Shriram City Union Finance would begin on August 27.
In a filing to the Bombay Stock Exchange (BSE), Shriram City, the consumer finance arm of the Shriram Group, said the open offer would begin on August 27 and close on September 15, 2009.
The open offer is being made to acquire up to 1,07,85,500 shares, representing 20 per cent stake in the company at a price of Rs 400 per share.
The open offer was scheduled to begin on November 8 and close on November 27, 2008, but due to delay in regulatory approval the offer had been rescheduled.
Last year, the company had entered into a definitive agreement with TPG, under which the PE firm was to invest up to $120 million (Rs 530 crore) to acquire a stake of up to 49 per cent in Shriram Retail Holdings (SRHPL), the holding company of Shriram City Union Finance (SCUFL).
The open offer was pursuant to the said investment as TPG now indirectly holds 26.7 per cent stake in SCUFL. As per Indian regulatory rules, a purchase of a 15 per cent stake in a firm triggers a mandatory open offer for another 20 per cent.
DSP Merrill Lynch is acting as the manager to the offer on behalf of Shriram Retail Holdings.
Shares of Shriram City were trading at Rs 390.10, up 0.03 per cent in late afternoon trade on the BSE.
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