Tatas to buy only 20% in VSNL via open offer
By Pradeep Rane | 14 May 2002
Mumbai: Panatone Finvest Ltd and other Tata group companies have announced that they will accept only 57 million equity shares amounting to 20 per cent stake in Videsh Sanchar Nigam Ltd (VSNL) through the open offer route. The offer was oversubscribed by many times and it was felt that the Tatas might acquire over 20 per cent in VSNL.
JM Morgan Stanley, the merchant banker for the offer, has informed the Bombay Stock Exchange that the open offer made by Panatone Finvest together with other Tata companies for acquiring up to 57 million equity shares (including shares underlying the ADSs), representing 20 per cent of the paid-up share capital of VSNL at a price of Rs 202 per share, closed on 9 May 2002.
As per the information given by the registrars to the offer, about 87.6 million equity shares (including shares underlying the ADSs) of VSNL have been tendered under the offer. Panatone will accept up to 57 million equity shares of VSNL under the offer on a pro rata basis. The offer was made by the Tata group after it acquired the government's 25 per cent stake in VSNL.
After the government's decision to disinvest 25 per cent of the shareholding of VSNL held by it to a strategic partner with the intention to transfer management control to a strategic partner through the competitive bidding route, Panatone Finvest was selected by the government for the sale of 7,12,50,000 fully paid-up equity shares, representing 25 per cent of the voting capital of VSNL held by the government, at a price of Rs 202 per share, the consideration payable in cash.
The open offer will not be subject to any minimum level of acceptances. The specified date (for the purpose of determining the names of the shareholders to whom the letter of offer would be sent) has been fixed at 22 February 2002. The offer was opened on 10 April 2002 and closed on 9 May 2002.
JM Morgan Stanley, the merchant banker for the offer, has informed the Bombay Stock Exchange that the open offer made by Panatone Finvest together with other Tata companies for acquiring up to 57 million equity shares (including shares underlying the ADSs), representing 20 per cent of the paid-up share capital of VSNL at a price of Rs 202 per share, closed on 9 May 2002.As per the information given by the registrars to the offer, about 87.6 million equity shares (including shares underlying the ADSs) of VSNL have been tendered under the offer. Panatone will accept up to 57 million equity shares of VSNL under the offer on a pro rata basis. The offer was made by the Tata group after it acquired the government's 25 per cent stake in VSNL.
After the government's decision to disinvest 25 per cent of the shareholding of VSNL held by it to a strategic partner with the intention to transfer management control to a strategic partner through the competitive bidding route, Panatone Finvest was selected by the government for the sale of 7,12,50,000 fully paid-up equity shares, representing 25 per cent of the voting capital of VSNL held by the government, at a price of Rs 202 per share, the consideration payable in cash.The open offer will not be subject to any minimum level of acceptances. The specified date (for the purpose of determining the names of the shareholders to whom the letter of offer would be sent) has been fixed at 22 February 2002. The offer was opened on 10 April 2002 and closed on 9 May 2002.