Parent Plans Delisting Of Hoganas India

Hoganas AB, global producer of metal powders is expected to delist its shares from the stock exchanges following a good response to its second offer to buy out the minority shareholders stake in its Indian subsidiary Hoganas India at a price of Rs 100 per share.

Though the offer data is yet being reconciled, the preliminary indications are that the promoters stake has crossed the 90 per cent benchmark making it possible for desisting.

The shares will be delisted from the three exchanges -- Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Pune Stock Exchange.

The second open offer closed on October 16. Shares of Hoganas India closed at Rs 97 a share on the Bombay Stock Exchange today with a volume of just 30 shares.

The move by the Swedish major is part of its global corporate policy of having fully owned subsidiaries. Hoganas AB had earlier made an open offer to the shareholders of Hoganas India at Rs 100 per share and had 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 Indian arm, it will make another offer in keeping with the Securities and Exchange Board of India (Sebi) takeover regulations.

The offer is subject to the receipt of necessary statutory and regulatory approvals and clearances required pursuant to the offer.

Hoganas AB, had earlier made an open offer between April 27 and May 26 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 for 33.69 per cent shares only.