Aegis To Buy Back 25%

The promoters of Aegis Logistics (formerly known as Aegis Chemicals) have proposed to buy back 40.28 lakh shares at Rs 12 per share.

The management is offering a 33 per cent premium to the current market share price of Rs 9.

However, the promoters are asking 152 per cent discount to the company's book value Rs 30.32 per share (excluding revaluation reserves).

The board of directors of the company, in its annual report for the year ended March 31, 2001, has passed a resolution to buy back shares up to 25 per cent of equity capital.

The final decision will be taken after approval of the shareholders at Aegis' forthcoming annual general meeting on September 13, 2001.

 

With the proposed buyback, the promoters' holding will increase to 79.95 per cent from the current 60.24 per cent. The new stake has been arrived at on the assumption that the bought-back shares shall be extinguished.

The promoters current hold 98.44 lakh shares out of Aegis' total equity base of 163.51 lakh shares. If the buyback succeeds, the total number of shares of the company will be reduced to 123.12 lakh.