Rayban, Seamec shareholders to benefit
By Pradeep Rane | 25 Feb 2002
While Luxxottica of Italy, Raybans parent, is expected to make an offer at around Rs 96 per share against the current market price of Rs 55 per share, the Technip group of France, Seamecs parent, is to make an offer at Rs 200 per share against the ruling market price of Rs 80.
The
Securities and Exchange Board of India (Sebi), the Indian
market regulator, last week pulled up both Luxxottica
and the Technip group for violating the Sebi takeover
code by not making an open offer following the acquisition
of shares in domestic companies. It had issued show-cause
notices to Luxxottica for the takeover code violation.
Under the Sebi takeover code, acquisition of over 15 per
cent in a domestic company triggers the takeover code
and the acquirer will have to make an open offer
for buying a minimum 20 per cent from other shareholders.
The notices have been issued to these companies
under regulation 44 and 45 of the Sebi takeover code and
section 11, 11B and 24 of the Sebi Act, asking why action
should not be taken for violating the code. Sebi has given
the two companies time till 5 March 2002 to reply.
Sebi says Luxxottica violated the code by not making an
open offer by buying the minimum 20 per cent from the
shareholders of Rayban Sun Optics India after it purchased
Raybans global parent. Rayban was formerly called Bausch and
Lomb India. In April 1999, the Luxxottica group acquired the
sunglasses business of B&L USA and through this, indirectly
gained control of the 44 per cent in B&L India.
Sebi has said
the company will have to make an offer to acquire a minimum
20 per cent from public shareholders of the
company. It said the reference date for calculating
the price will be 28 April 1999, which is the six-month
average price prior to the reference date. The open offer
works out approximately to Rs 96.35 per share.
Sebi also served a notice to the Technip group for violating the
takeover code following its acquisition of a controlling
stake in Seamec. The French company had acquired 29.7
per cent in Coflexip Stena Offshore (CSO) from Stena International sometime
in April 2000. CSO was the parent company of Seamec.
Following
the acquisition of the stake, Technip had made an open
offer in July 2001 to minority shareholders of
CSO and secured a 98.4 per cent in CSO in October
2001. With this, Technip also got an indirect control
of CSOs 58.2 per cent stake in subsidiary Seamec, formerly
Peerless Shipping. Sebi has said the reference date
for calculating the price is 12 April 2000,
the date when it acquired the stake from Stena International.
The offer price is estimated to be over Rs 200.