The Hindu : Parry Agro's open offer

Online edition of India's National Newspaper
Wednesday, Feb 26, 2003

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Business

Parry Agro's open offer

By Our Special Correspondent

CHENNAI FEB. 25. New Ambadi Investments (Pvt.) Ltd. has made an open offer to non-promoter equity shareholders of Parry Agro Industries Ltd. to buy the outstanding shares at Rs.70 per share. The promoter group holds 76.91 per cent stake in the company. The open offer is valid till March 19.

New Ambadi Investments is a part of the promoter group of Parry Agro. It holds 8.3 per cent stake in Parry Agro. If every non-promoter shareholder sells his/her shares, the holding of New Ambadi Investments will go up to 31 per cent in Parry Agro. New Ambadi Estate, another promoter group outfit, holds 24.5 per cent stake in the company. Carborundum Universal and Cholamandalam Investment, also group firms, hold 8.3 per cent and 4.5 per cent, respectively, in Parry Agro.

A release from New Ambadi Investments (Pvt.) Ltd. claims that the offer price of Rs.70 a share represents a premium of 62 per cent over the pre-offer traded price of Rs.43.10 on December 12, 2002.

The shares of Parry Agro are listed on Bombay Stock Exchange, Madras Stock Exchange and Cochin Stock Exchange. If the public holding post-open offer falls below 10 per cent, the promoters are expected to go for a de-listing of Parry Agro shares.

The open offer comes in the backdrop of Parry Agro skipping dividend for the last three years and reporting a loss for the nine-month period ended December 2002.

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