Auto News

M and M to make open offer for Swaraj Automotives

By Motortrend India Staff   |   14 November,2011

Auto major Mahindra & Mahindra will make an open offer to acquire up to 27 per cent stake in Swaraj Automotives entailing an outgo of up to Rs 5.82 crore.

In a filing to the BSE, the company said its board has approved “consolidation of its shareholding in Swaraj Automotives Ltd (SAL) through a voluntary open offer”.

“The company would be making an open offer to the shareholders of SAL for acquiring up to 6,47,382 fully paid up equity shares of Rs 10 each constituting 27 per cent of the total voting equity share capital of SAL,” it said.

The offer price will be Rs 90 per equity share for a total price consideration of not exceeding Rs 5.82 crore in accordance with SEBI takeover code, it added.

The shares of SAL are listed on the Delhi Stock Exchange. In 2007, M&M had made an open offer for 20 per cent stake in SAL by virtue of having acquired 43.3 per cent in Punjab Tractors, which held shares in the company.

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