MUMBAI, March 20: Sterlite Industries on Friday revised its offer price for picking up a 20 per cent stake in Indian Aluminium (Indal) to Rs 115 per share from Rs 90 offered earlier -- Rs 10 more than the Rs 105 counter bid made by Alcan Aluminium, the principal shareholder of Indal.Anil Agarwal, chairman and managing director of Sterlite, said here today that the offer size continues to be 20 per cent of the equity capital of Indal, i.e, 142,22,400 fully paid equity shares of Rs 10 each. However, the offer is no longer subject to any condition of minimum level of acceptance. This means all eligible responses received will be accepted upto 20 per cent as per the terms in the letter of offer to be mailed to the Indal shareholders.
The total consideration payable for the 20 per cent acquistion would be about Rs 163.56 crore. Sterlite has made requisite escrow arrangements as per SEBI regulations, Agarwal said.
The war of counter-bids is likely to continue as Suresh Thadani, chief financial officer ofAlcan, had earlier said: "We have a lot of time. We will come out with a proper announcement at the right time."
It may be recalled that Sterlite and Eastern Galvanishing Private Ltd had made a public announcement of their open offer (first offer) to shareholders of Indal on February 20, 1998, for acquisition of 20 per cent stake in Indal's equity capital at a price of Rs 90 per share. This offer was conditional upon minimum level of acceptance of 10 per cent equity capital of Indal.
However, Alcan Aluminium Ltd of Canada which holds over 34 per cent stake in Indal announced its counter-offer to other shareholders, to acquire 20 per cent of the voting capital of Indal at a price of Rs 105 on March 9.Alcan has made reference to its "technology linkage" with Indal, its commitment jointly with Indal for investment in Utkal Aluminium project and policy compulsions for dilution of its equity holding in Indal.
Agarwal said the "offer annoucement does not give nay specific details about Alcan's technicalknowhow yet to be absorbed, how critical they are for the 60 year old Indal with its own self-sufficient R & D and how its outstanding collaboration agreements are linked to the equity holding of Alcan."
"Sterlite has been advised by its legal advisors that Alcan's counter-offer cannot be allowed to proceed in the absence of permission under FERA. In the absence of any agreement with the existing shareholders of Indal and/or Indal itself, Alcan's offer is not foreign direct investment (FDI). On the other hand, such direct acquisition from secondary market is presently permissible only for FIIs/NRIs," Agarwal said.
Questioning the counter-offer of Alcan, he said acquisition through this type of a counter-offer (in a non-negotiated backdrop) has never been granted any RBI/FIPB permission. "The situation is unprecedented," he added.
However, indications are that Sterlite is likely to play a quite waiting game if it is unable to mop up any significant stake in Indal.
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