In a move that may eventually lead to delisting, Brussels-based Solvay Group has acquired 18.39 per cent stake in its subsidiary Rhodia Specialty Chemicals through an open offer of Rs 40 crore.
Solvay has hiked its holding in the company to 91.32 per cent from 72.93. According to SEBI’s public shareholding regulations, public listed companies should have minimum free-float of 25 per cent.
Morgan Stanley on behalf of Solvay made an open offer to acquire 9.13 lakh shares (27.07 per cent) at Rs 835.82 for a share from the original shareholders and at Rs 386.72 a share from other shareholders, according to the company’s announcement on the BSE.
The price difference between original and other shareholders is according to regulator’s consent order which had directed the company to pay an interest of 15 per cent from July 14, 2000, till the open offer is settled.
The company has managed to buy back 6.2 lakh shares (18.39 per cent) for Rs 40 crore. Original investors have tendered 3.56 lakh shares, while other investors have offered 2.63 lakh shares in the open offer. Post-offer, the public investors now hold just 2.92 lakh shares (8.67 per cent)
Solvay operates three companies in India — Rhodia Specialty Chemicals which was acquired in 2000, Rhodia Polymers and Specialties and Hindustan Gum and Chemicals, a joint venture with MP Birla Group since 1962.
Rhodia Specialty Chemicals (formerly Albright & Wilson Chemicals India) is a chemical manufacturer and produces acids and industrial phosphates.
It caters to home and personal care, industrial formulations and paints and coatings, as well as oilfield chemicals.
The company operates a plant at Roha in Maharashtra and produces surfactants for the home care, personal care and agrochemical markets. Structured around 11 global business units, the Solvay group employs about 14,250 people globally and recorded sale of €6 billion (about Rs 47,000 crore) in 2011.
suresh.iyengar@thehindu.co.in