Ciba Speciality not to raise open offer price

Mumbai: Ciba Speciality Chemicals Holding Inc has announced its decision not to increase the offer price of the ongoing open offer to the public shareholders of Ciba Speciality Chemicals India Ltd (CSCIL). The last day for any revision in the offer price of Rs 110 per share was 25 June 2002.

A Ciba spokesperson says this offer was made at a 57-per cent premium to the average price of the 26 weeks prior to the announcement. Considering the financials of Ciba Speciality Chemicals India and its stock price performance, this is a fair exit value for the shareholders.

On 17 April 2002, Ciba Speciality Chemicals Holding had announced its decision to make an open offer to the public shareholders of CSCIL at a price of Rs 110 per share. The offer, which opened on 5 June 2002, seeks to acquire the entire public share holding in CSCIL.

On 3 June, the CSCIL board had recommended a dividend of Rs 9 per share for the financial year ended 31 March 2002-02. As indicated in the letter of offer sent to the shareholders, this dividend, if approved by the shareholders, will also be paid to the existing shareholders who tender their shares in the open offer, effectively making the offer price as Rs 199 per share in Modern Foods to Hindustan Lever.