Sun offer to buy 25% more in Coates

Sun offer to buy 25% more in Coates
ENS ECONOMIC BUREAU

Mumbai, Feb 19

Sun Chemical Group BV, the Netherland-based supplier of graphic artproducts, is making an open offer to the shareholders of Coates of IndiaLimited (COIL) to acquire upto 17,21,385 fully paid up shares, representing25 per cent of the paid-up equity, at a price of Rs 165 per share. Theacqusition will cost Sun Chemicals about Rs 28.39 crore.

The company has said that the offer, which opens on February 21, is beingmade under Regualtion 10 and 12 of the Sebi takeover regulations. SunChemicals Group has already received the approval of the Foreign InvestmentPromotion Board (FIPB) to acquire the shares of COIL.

Coates Brothers Plc, UK, which was a subsidiary of TotalFina S.A, a FrenchOil and chemicals conglomerate, presently holds 51 per cent in the equityshare capital of COIL comprising of 35,11,624 equity shares.

As part of a restructuring exercise, the Total group decided to sell itsintersts in ink business to Sun Chemical Group B.V.

Pursuant to this restructuring, Sun Chemicals Group entered into anagreement dated December 31, 1999 with Coates Bros Plc U.K to acquire itsshareholding in COIL at a price of Rs 155/- per fully paid share.

As a result of SCGBV buying the ink businss from TOTAL, Coastes BrothersPLC. has now become the subsidiary of SCGBV. Coates of India is a leadingmanufacturer of letterpress inks,offset inks, liquid inks, screen inks andprint finsish.

The Sun Chemical Grooup It products are used in the various printing andpackaging applicaitons. Acquistion of shares of COIL is expected to give SunChemical Group an opportunity to tap the potential of Indian Markets withits wide range of products. The offer will open on February 2000 and willclose on March 21, 2000.