Tata Chem to make open offer for Brunner Mond's remaining equity
By Our Corporate Bureau | 27 Dec 2005
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Mumbai: Tata Chemicals (TCL), which acquired 63.5 per cent equity stake in Brunner Mond (BM) last Friday for Rs 508 crore will make an open offer for the remaining equity of the UK based company after the Christmas and New Year holidays.
The company will fund the acquisition from internal accruals, said Prasad Menon, managing director, TCL, at a press briefing here. The stake acquired so far has also been funded without any borrowings, with the company having used its cash resources, including FCCB proceeds, for the purpose.
He said the FCCB funds have almost dried up; US$108mn were spent for the BM deal while TCL drew US$38mn earlier this year to become an equal partner at Indo Maroc Phosphore SA (IMACID).
Tata Chemicals and UK-based Brunner Mond Group will be the third biggest soda ash manufacturer worldwide with a production capacity of 3 million tonnes.
The current chairman of Brunner Mond will continue to head the company as a Tata nominee and Menon is also expected to join the board.
The company will fund the acquisition from internal accruals, said Prasad Menon, managing director, TCL, at a press briefing here. The stake acquired so far has also been funded without any borrowings, with the company having used its cash resources, including FCCB proceeds, for the purpose.
He said the FCCB funds have almost dried up; US$108mn were spent for the BM deal while TCL drew US$38mn earlier this year to become an equal partner at Indo Maroc Phosphore SA (IMACID).
Tata Chemicals and UK-based Brunner Mond Group will be the third biggest soda ash manufacturer worldwide with a production capacity of 3 million tonnes.
The current chairman of Brunner Mond will continue to head the company as a Tata nominee and Menon is also expected to join the board.
