Fis Unload Cabot Holding

Financial institutions, Unit Trust of India (UTI) and the Life Insurance Corporation of India (LIC) have sold their stake in Cabot India to the US parent, Cabot UK Holdings Ltd.

The sale of shareholding by the two institutions was made under the open offer of the US company for Rs 100 per share.

Cabot UK Holdings Ltd, registered in England and Wales, and Cabot Corporation of the US, a company incorporated under the laws of the state of Delaware, US, made an offer to the shareholders of the Indian outfit.

The offer was to acquire up to 34,95,360 fully paid-up equity shares of Rs 10 each of the local arm in compliance with the Securities and Exchange Board of India (substantial acquisition of shares) Regulations, 1997, at a price of Rs 100 per share.

 

The US company has a 60 per cent holding in the Cabot India and the open offer indicates that it wishes to buy out the other shareholders in the company.

UTI sold 3,17,330 equity shares of firm, amounting to 3.6 per cent of the total equity capital to the acquirer, while LIC sold 1,82,840 shares in the open offer.

The price of the scrip on the Bombay Stock Exchange is ruling around the offer price at Rs 96.50.