Hoganas Makes 2nd Offer To Buy Out Arm

Hoganas AB, global producer of metal powders, has made a second offer to buy out the minority shareholders' stake in its local subsidiary Hoganas India at a price of Rs 100 per share.

The offer will remain open till October 16, 2001. Hoganas India today closed at Rs 95 a share on the Bombay Stock Exchange.

The move by the Swedish major is part of its global corporate policy to form fully owned subsidiaries.

Hoganas AB had earlier made an open offer to Hoganas India at Rs 100 per share. The firm succeeded in raising its equity stake from 51 per cent to 84.69 per cent.

If the parent manages to raise its shareholding to 90 per cent or more in the local arm via the second offer, it will make another offer in keeping with the Securities and Exchange Board of India (Sebi) takeover regulations.

On completion of the subsequent offer the shares will be delisted from the three exchanges -- the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and the Pune Stock Exchange -- where the shares are currently being traded.

The offer is subject to the receipt of necessary statutory and regulatory approvals and clearances required by the acquirer to acquire the shares tendered pursuant to the offer.

Hoganas AB had earlier made an open offer between April 27 and May 26 2001 to acquire 26.71 lakh shares of Rs 10 each at Rs 100 a share, accounting for 49 per cent of the paid-up capital of Hoganas India, but managed to get response from 33.69 per cent shares only.