Prolec-GE makes open offer for 20% stake in Indo Tech

Mexican electrical transformer maker Prolec-GE International today announced a Rs 86.23-cr open offer to the shareholders of Indo Tech Transformers, for up to 20% stake at Rs 406 a share.     

The open offer price represents a premium of 46.67 per cent over Indo Tech's Friday closing of Rs 276.80 on the Bombay Stock Exchange.     

The open offer would be made by Prolec-GE International and is scheduled to begin on January 29 and close on February 17, 2009, Indo Tech said in a filing to the BSE.     

The offer is for acquiring 21.24 shares representing 20% stake in the Chennai-based firm.     
Following the announcement of the open offer, shares of Indo Tech surged as much as 10% to a high of Rs 304.45. It was later trading at Rs 285, up 2.96% on the 30-share barometer.     

Last week, the Mexican firm had entered into an agreement with IndoTech for acquiring the promoters' entire shareholding of 57.71 lakh, aggregating to 54.35% of the company's paid-up capital.     

Prolec-GE International is a joint venture firm between General Electric and Xignux, a major Mexican industrial group.