US-based Johnson Controls and Japan’s Hitachi Appliances have formalised their agreement to form a joint venture that will acquire Hitachi Appliances’ global air-conditioning business. The deal was announced in December 2013 and was to have started operations in 2014, but its closure has stretched all the way till 2015. This transaction has a local effect, as it will change the ownership of India’s Hitachi Home & Life Solutions (India), a 74.25% subsidiary of Hitachi Group. Its share rose by 20% on Thursday, as investors are jumping in, to make a quick buck in open offer. If the transaction does necessitate an open offer, there are exemptions available depending on the structure of the transaction, the offer price will determine if shareholders get a windfall. Continue Reading →
Open Offer
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Sebi hikes open offer threshold to 25% from 15%
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The Securities and Exchange Board of India, the capital market regulator, has made key changes to the existing takeover regulations. Sebi was acting upon the report of the Takeover Regulations Advisory Committee, which had submitted its recommendations in July 2010. In the interim, there was a change of guard at Sebi, which may have delayed the decision-making process.
Here are the main changes and impact:
Filed under: Economy+Policy, Top News, Companies Mergers & Acquisitions, M&A, Open Offer, Sebi, Takeover
Zenotech open offer on hold due to court order
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The open offer by Daiichi Sankyo to Zenotech Laboratories’ shareholders will not open today, as scheduled. The Chennai High Court (Madurai Bench) has granted an interim injunction in connect with the offer, said ICICI Securities, the manager to the offer, in a filing to the Bombay Stock Exchange.
Filed under: Companies, Quick News, Daiichi Sankyo, M&A, Open Offer, Ranbaxy, Zenotech
Tech Mahindra-Satyam: India’s first leveraged buyout?
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At first, it might seem that Tech Mahindra’s plans did not work out, as its open offer failed, leaving it with a 43% stake instead of a 51%. This setback hardly matters, however, if the two companies merge. A merger could mean that the group could repay the entire debt taken for the acquisition, using Satyam’s shares held by Tech Mahindra, if it so wishes.
Filed under: Companies, Information Technology, News Analysis, M&A, Open Offer, Preferential Allotment, Satyam, Satyam Scam
Tech Mahindra’s open offer to Satyam shareholders closes
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When Tech Mahindra emerged as the successful bidder for the scam-ridden software company Satyam Computer Services, it seemed like the subsequent open offer would be a success.
But Satyam’s share price rose significantly, in the interim, as investors began to regain some confidence in its future, especially after its provisional results for the third quarter were made public. The company’s profitability was much better than what was feared. While the open offer was at Rs 58 the share closed today, the last day of the offer, at Rs 74.
Filed under: Companies, Top News, Open Offer, Preferential Allotment, Satyam, Tech Mahindra
Novartis revises open offer price by 28% to Rs 450
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Novartis AG has offered Novartis India’s shareholders Rs 99 more per share to make its open offer more attractive. The promoter holding in Novartis will increase to 89.93%, if the offer succeeds, just below the 90% cap on promoter holding in a listed company. The current share price is Rs 444 and it remains to be seen how many shareholders tender, even at the revised price of Rs 450. The price had touched a high of Rs 467 indicating investors were expecting the revised price to be higher. Continue Reading →
Filed under: Companies, Top News, Markets Stock Markets, Novartis, Open Offer, Pharmaceutical
Pfizer to raise stake in Pfizer India to 75%; is delisting on the cards?
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Pfizer Investment Netherlands BV, a subsidiary of Pfizer Inc, will pay Rs 675 a share to acquire a 33.77% stake in Pfizer India. At this price, the total consideration is Rs 680 crore and Pfizer’s stake will go up to 75%. It will take regulatory approvals for the open offer. Pfizer will have to revise its offer price for the open offer to succeed, as the current market price is already Rs 685. It would have known it may not get many buyers at this price. But it expects the offer to open only in June 2009, so it has used the prevailing price to arrive at a floor. Continue Reading →
Filed under: Companies, Top News, Delisting, M&A, MNC, Open Offer, Pfizer, Pharmaceutical
Sun Pharma requests a judgement from Israel’s Supreme Court
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Sun said, in a SEC filing, it has extended the tender offer closing date from Jan 9 to Jan 30. It also said that it has informed the Supreme Court that its negotiations to reach a settlement have been unsuccessful. It is now awaiting the court’s decision in the matter. The dispute concerns the price at which Sun will acquire Taro’s shares from promoters and minority shareholders. Initially, Sun had offered $7.75 a share, which it then hiked to $9.50 a share, but Taro responded first with an offer to conduct a shareholder referendum to decide the price. Continue Reading →
Filed under: Companies, Top News, Companies International, M&A, Open Offer, Sun Pharma, Taro
Sun Pharmaceuticals refuses Taro’s $15 a share offer
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Sun Pharmaceuticals has sent a letter to the stock exchange, rejecting the offer put forth by Taro proposing $15 a share in the tender offer. In a letter, in what has now become routine, Sun Pharmaceuticals rejects the referendum proposal. It also addresses Taro’s latest offer of taking the merger price up to $15 a share.
Filed under: Companies, Quick News, M&A, Open Offer, Sun Pharma, Taro
HP-EDS deal: are Mphasis shareholders jumping the gun?
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Update on May 22: EDS has sent a clarificatory letter to the stock exchanges stating that it is not required to make an open offer, under Sebi’s existing regulations. That will disappoint retail shareholders who were hoping for a windfall, though instutional shareholders would have realised that an open offer was not on the cards. Read the text of the letter here.