EID Parry makes open offer for GMR Industries
09 Jul 2010
EID Parry India has made an open offer to shareholders of GMR Industries Ltd, following its acquisition of a majority stake in GMR Industries on 25 April this year.
EID Parry, however, revised the scheduled opening date of the offer to 15 July from the earlier 18 June. The offer will close for subscription on 3 August, Enam Securities said in a stock exchange filing on behalf of EID Parry.
EID Parry had entered into a definitive agreement with GMR Holdings Private Ltd on 25 April to acquire a majority stake in GMR Industries Ltd, the agro-business entity of the GMR group.
GMR Industries, listed on the BSE and NSDE, owns and operates three fully-integrated sugar complexes in Andhra Pradesh and Karnataka, with a combined capacity of 11,000 tonnes per day and 95 kilo litres per day of distillery. EID Parry chairman A Vellayan and GMR Holdings director K Balasubramanian signed the agreement.
As per the agreement, GMR group will divest a majority equity stake such that EID Parry would hold 65 per cent in GMR Industries post open offer. GMR group would become a minority shareholder in the company.
The transaction is in line with GMR group's strategy to divest its none-core business and focus on energy and infrastructure.