The Pawan Ruia Group has made an open offer for Dunlop India and Falcon Tyres. This follows its indirect acquisition of these two outfits from the Jumbo Group in December 2005. The group had used a special purpose vehicle incorporated in Singapore called Wealth Sea Private Limited for the acquisition of Dil Rim & Wheels (DRW). DRW owns 74% stake in Dunlop India and close to 69% in Falcon Tyres.
The Ruias have announced an open offer for 20% in Dunlop at Rs. 10 per share. The open offer for Falcon would be at Rs. 151 per share. The total estimated outgo of the group for these twin offers would be Rs. 27.5 crores – Rs. 18 crores for Falcon Tyres and around Rs. 9.5 crores for Dunlop. The Ruia group already holds a 74.5% stake in Dunlop and over 70% in Falcon Tyres. The group has appointed Kolkata-based Microsec Capital as the manager to the offer. The group outfits Wealth Sea and Manali Properties would spearhead the open offer opening on March 24.
The Securities and Exchange Board of India (SEBI) had directed the Ruia group to make open offers for both the companies in November. The SEBI had said in its order that the indirect purchase of shares of Dunlop and Falcon in an overseas deal had violated the takeover code.
Read the Business Standard article.
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