Amtek Auto buys 40.2 per cent in Amtek India in consolidation move
28 May 2010
Arvind Dham-led auto component group Amtek Auto Ltd today said it has agreed to buy 40.2 per cent in group firm Amtek India and has already acquired a-26.25 per cent stake in the latter, after an unsuccessful attempt to merge various group entities.
Amtek Auto bought the stake through block deals on the Bombay Stock Exchange at an average price of Rs64.83 a share earlier on Friday.
The parts maker will make an open offer to buy up to 20 per cent more in Amtek India as per regulation and has appointed D&A Financial Services Pvt Ltd as manager to the offer, it said in a statement. Amtek Auto has signed an agreement with the promoters of Amtek India to acquire 50.72 million shares, or a 40.21 per cent stake, at a maximum price of Rs68 each, it said.
The shares will be bought via block deals or off-market purchases, Amtek said.
"The promoters of Amtek India are transferring the entire holding to Amtek Auto. This is a step towards consolidation after our merger plan got derailed," Santosh Singhi, chief financial officer of Amtek Auto, said.
Amtek Auto had dropped a plan to merge five group companies, including Amtek India, with itself after the High Court of Punjab and Haryana on 30 December dismissed the plan citing a change in valuation of shares and decline in turnover and profits.
.webp)
