Tide Water management gets support against hostile bid

The management of Tide Water Oil is getting support from other shareholders to thwart a hostile takeover bid.

“I see this as a teaser of an offer. I don’t see any threat to the present management from this hostile bid. Besides, the government has no plans to divest any stake in Tide Water,” said Kallol Dutta, chairman and managing director of Andrew Yule and Co, which controls Tide Water.  “We have a written commitment from both the insurance companies supporting the present management of the company. So, we effectively control around 40 per cent stake.”

This apart, another five per cent of retail shareholders have given a verbal commitment not to sell their shares as they are happy with the management, he added.

“Most are traditional shareholders who have got a good return from the performance. Hence, we believe the open offer will not get a favourable response,” said Dutta.

On Tuesday, Standard Greases and Specialities, along with Janus Consolidated Finance, Alpha TC Holdings and Tata Capital Growth Fund, came up with an open offer to acquire up to 22.65 million shares, or 26 per cent stake, in the company. The offer was priced at Rs 16,632 a share.

Standard Greases and Specialities and Janus collectively held 217,234 fully paid-up equity shares of Tide Water Oil, representing 24.93 per cent of stake. Andrew Yule & Co has 26.22 per cent stake.

Life Insurance Corporation and United India Insurance have 4.22 per cent and 6.88 per cent, respectively. Tide Water Employees Welfare Trust holds 2.46 per cent.  The scrip closed at Rs 17,802 on Thursday, up almost one per cent; the benchmark index closed 0.2 per cent higher.