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SEBI says no open offer in Hughes case
The Indian capital market regulator has ruled the new owner of Hughes Electronics is not required to make an open offer for its Indian subsidiary Hughes Software Systems, a senior Securities and Exchange Board of India (SEBI) official said on Thursday.
The Indian capital market regulator has ruled the new owner of Hughes Electronics is not required to make an open offer for its Indian subsidiary Hughes Software Systems, a senior Securities and Exchange Board of India (SEBI) official said on Thursday.
The stock has jumped about 60 per cent since late October on hopes of an open offer. In early Thursday morning trading, Hughes Software's shares were down 11.8 per cent at 266.50 rupees.
"We were satisfied with the case presented by Hughes Software and convinced that there is no change in management," an executive director of SEBI said on condition of anonymity. In late October, General Motors agreed to sell its satellite television unit Hughes Electronics to EchoStar Communications for $25.8 billion in cash and stock.
Hughes Electronics owns 56.1 per cent of Hughes Software Systems, a leading Indian communications equipment and software maker.
Under Indian takeover rules, any company which acquires control of a publicly listed domestic company, directly or indirectly, has to make an open offer to buy a further 20 per cent from the remaining shareholders. In a communique to the stock exchanges in late October, Hughes Software said there was no change in control of its management following the purchase of its US parent.
It also said it was unlikely an open offer would be made.
"Since there is no agreement or intention to acquire Indian shares of Hughes Software Systems and since the amalgamation is not an indirect acquisition of Hughes and since there is no change in control or agreement to change control, no minimum public offer is likely to be made," Hughes said in a statement sent to the Bombay Stock Exchange on October 29.
Bureau Report
The stock has jumped about 60 per cent since late October on hopes of an open offer. In early Thursday morning trading, Hughes Software's shares were down 11.8 per cent at 266.50 rupees.
"We were satisfied with the case presented by Hughes Software and convinced that there is no change in management," an executive director of SEBI said on condition of anonymity. In late October, General Motors agreed to sell its satellite television unit Hughes Electronics to EchoStar Communications for $25.8 billion in cash and stock.
Hughes Electronics owns 56.1 per cent of Hughes Software Systems, a leading Indian communications equipment and software maker.
Under Indian takeover rules, any company which acquires control of a publicly listed domestic company, directly or indirectly, has to make an open offer to buy a further 20 per cent from the remaining shareholders. In a communique to the stock exchanges in late October, Hughes Software said there was no change in control of its management following the purchase of its US parent.
It also said it was unlikely an open offer would be made.
"Since there is no agreement or intention to acquire Indian shares of Hughes Software Systems and since the amalgamation is not an indirect acquisition of Hughes and since there is no change in control or agreement to change control, no minimum public offer is likely to be made," Hughes said in a statement sent to the Bombay Stock Exchange on October 29.
Bureau Report