Illinois Tool Raises Itw Holding To 92% Via Offer

US-based Illinois Tool Works Inc has increased its stake in the Indian subsidiary, ITW Signode India Ltd, from 51 per cent to 91.9 per cent through the successful completion of its open offer.

The parent had made an open offer for 112.1 lakh shares, representing 49 per cent of the share capital of ITW Signode, at Rs 80 per share. The offer closed on October 30 and the company received 93.5 lakh shares through the offer.

As per the Securities and Exchange Board of India regulations, the parent company will now have to make a second private offer for the balance 18.6 lakh shares held by the public, prior to applying for delisting.

The private offer, for which the offer price will be the same, will commence in early December and will be open for of 30 days.

After the second offer, the parent company will approach the subsidiary to apply for delisting from the Hyderabad Stock Exchange and the Bombay stock Exchange. The process of delisting is expected to be completed by April 2002.

The parent company has been operating successfully in several parts of the world and the standard practice of the company has been to control 100 per cent of all its units. The ownership of the parent company in the Indian subsidiary is sought to be brought in line with the standard practice of the group world wide.