AP Paper acquirer files appeal in SAT

IP Holdings Asia Ltd, which acquired a majority stake in Andhra Pradesh Paper Mills in April this year, has filed an appeal before the Securities Appellate Tribunal on August 5, according to a filing by AP Paper with the BSE on Wednesday.

The appeal is in response to a direction from the Securities and Exchange Board of India (SEBI), which asked the company to revise the open offer price to include the non-compete fee.

SEBI is reported to have said in a letter that certain promoter group sellers were ineligible to receive the non-compete fee, and asked the acquiring company to revise the offer price.

"The acquirer, being aggrieved with the above direction, has filed an appeal before the Securities Appellate Tribunal on August 05, 2011," the company said. It sought setting aside of the SEBI's direction contained in the latter's observation letter.

The matter is expected to be heard shortly, the company said.