Tata Chemicals to become single largest stakeholder in Rallis India
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Tata Chemicals to become single largest stakeholder in Rallis India

Last Updated: Thursday, August 13, 2009, 13:46
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Tata Chemicals to become single largest stakeholder in Rallis India Mumbai: Tata Chemicals has made an offer to purchase the entire holding of Tata Tea in Rallis India for up to Rs 249.79 crore, as part of a move to become the single largest stakeholder in the agro-chemical manufacturer.

In a filing to the Bombay Stock Exchange, Tata Tea said it has received an offer from Tata Chemicals to purchase from the company up to 29,38,713 equity shares (its entire holding of 24.52 percent in Rallis India) at a price not exceeding Rs 850 per share.

As of June 30, 2009 the total promoter holding in Rallis India stood at 45.20 percent out of which 9.40 percent stake is being held by Tata Chemicals.

The rest 35.80 percent stake in Rallis India is being held by other Tata group firms like Tata Tea (24.52 percent), Tata Sons (7.52 percent), Tata Investment Corporation (2.42 percent) and Ewart Investments (1.35 percent), which Tata Chemicals intends to purchase.

The announcement comes a day after Tata Chemicals received the board's approval to raise its stake in Rallis India by purchasing an additional 35.80 percent stake from other promoter group companies in a move which would make it the single largest shareholder in the company.

"The offer is subject to transfer of shares satisfying all the tests prescribed under SAST Regulations for being regarded as an inter-se transfer amongst the qualifying promoters and being eligible for exemption from an open offer obligation," Tata Chemicals had said in a filing to the exchanges yesterday.

The transfer of shares would be by way of inter-se transfer among qualifying promoters at a maximum price of Rs 850 per share and the offer of Tata Chemicals would be considered by Tata Tea's committee of directors constituted for this purpose.

Shares of all the three Tata group firms were trading in the positive territory with Rallis India surging the maximum among them to hit a 52-week-high on the BSE.

Rallis India was trading at Rs 790, up 7.20 per cent, Tata Chemicals at Rs 268.30, up 3 per cent and Tata Tea was hovering around Rs 900. PTI AKH DRR

Bureau Report

First Published: Thursday, August 13, 2009, 13:46

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