M&M launches open offer to buy 20% in EPC Ind

Diversified firm Mahindra & Mahindra today launched an open offer as per a revised plan to acquire 20% additional stake in EPC Industries from public shareholders as per a revised schedule.

In a filing to the Bombay Stock Exchange (BSE), the company said the open offer, for which the price has been fixed at Rs 66.55 per share, will close on August 9.

Earlier, the company had announced that the open offer would start on April 6 and close by April 25.

The company will acquire up to 3.45 million shares of Rs 10 each, representing 20% of EPC Industries at a price of Rs 66.55 per share, it said.

YES Bank is the manager for the open offer.

Earlier, M&M had announced that it would acquire 38% stake in EPC Industries for Rs 43.35 crore to mark its foray into the micro irrigation business.

Micro irrigation is a water efficient technology that reduces the usage of the natural resource, while improving the productivity in agriculture.

As part of the deal, M&M would subscribe to 65,58,065 fully paid-up equity shares of the face value of Rs 10 each of EPC, on a preferential basis, at a price of Rs 66.10 per share.

On the completion of the preferential allotment and the open offer, M&M would be acquiring the management and control of EPC and would be classified as promoter of EPC.

Established in 1981, EPC is present in over 12 states and sells many equipment, including dip irrigation systems and industrial pipes.

Shares of EPC Industries today closed 0.36% down at Rs 139.50 on the BSE.