RPM International plans open offer for 20% more of Kemrock
13 May 2011
Specialty chemicals manufacturer RPM International Inc of the US today said it has made an open offer to acquire an additional 20-per cent stake in Vadodra-based fiberglass and composites maker Kemrock Industries and Exports for Rs201.51 crore.
RPM International proposes to acquire 37,38,440 shares of Kemrock Industries, representing 22.29 per cent of the current equity capital (20 per cent of the diluted equity capital), at a price of Rs539 a share, Kemrock - a fully integrated fiberglass reinforced plastic composites manufacturer - said in a regulatory filing.
The open offer will start on 7 July and will close on 26 July 2011, according to a separate filing by Kotak Investment Banking, which is managing the offer.
At the end of 31 March, RPM International had 24,96,266 shares in Kemrock, representing a 14.9 per cent stake. Under Indian laws, a company that acquires 15 per cent or more of another is obliged to make an open offer to buy an additional 20 per cent.
Commenting on the development, Kemrock founder and managing director Kalpesh Patel said, "We've had a long-standing partnership with RPM and we welcome this additional investment as a means to further our business relationship."
RPM International makes of specialty chemicals such as high-quality specialty paints, protective coatings and adhesives.