SAT overrules Sebi on Areva open offer

The Securities Appellate Tribunal (SAT) today set aside a Sebi order asking the Alstom Holdings and Schneider Electric consortium to revise the open offer price for shareholders of Areva T&D India.

In its order, SAT said it was clear from the press releases of November 30, 2009, of the consortium and the seller that “no agreement was reached between the two on that date and the parties in fact only agreed to negotiate in an exclusive manner in order to reach a final agreement for the proposed sale”. The move, according to SAT, was not an announcement of the global acquisition of the parent company of Areva T&D India.

SAT said Sebi had erred in directing the Alstom-Schneider consortium to recalculate the offer price with reference to November 30, 2009. The tribunal asked the consortium to ignore the date and proceed with the open offer.

Alstom and Schneider Electric indirectly acquired 72.18 per cent of Areva T&D India, following an acquisition of Areva T&D Holdings SA for 2.29 billion euros on January 20. The acquisition triggered an open offer to buy back 20 per cent of shares from Areva T&D India’s shareholders, as per Sebi norms.