New Delhi: US giant GE's Rs 1,926-crore open offer to acquire publicly held shares in Alstom T&D India is in compliance with Sebi norms but shareholders should make informed decision as the offer price of Rs 300.98 a share is less than trade price, Alstom's independent directors have opined.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
The Board of Directors of Alstom T&D India Ltd had on November 10, 2015 constituted a Committee of Independent Directors (IDC) for providing reasoned recommendations on the open offer to the shareholders of the company made by GE Energy Europe BV.
"The IDC is of the opinion that the offer price of Rs 300.98 per equity share is in accordance with the guidelines prescribed by the Sebi (SAST) Regulations," the company said in a regulatory filing disclosing the recommendations of IDC.
The Committee stated that the market price of the shares of the company on BSE and NSE was Rs 447.90 and Rs 449.10 respectively at close of trading on Friday, which is more than the offer price.
"The shareholders should independently evaluate the offer in consultation with their tax and financial advisors and take informed decision in this regard," it said.
The IDC was headed by Kirit S Parikh and other members included Rakesh Nath, Chandan Roy and Bhanu Bhushan.
The US energy and healthcare giant General Electric Co (GE) made the open offer following its $16.9 billion bid to acquire the global energy assets of the French multinational company, Alstom.
Alstom has two listed entities in India with business interests in power generation and the transportation (Alstom India) and transmission and distribution sector (Alstom T&D).
The French parent owns a 68.56 per cent stake in Alstom India and 75 per cent in Alstom T&D.
GE has made open offer for buying all the publicly held shares in both the companies.
Shares of Alstom T&D India, in which GE is seeking to buy 6.4 crore shares, were trading in BSE at Rs 451 at 1400 hours.
GE has made an open offer to acquire 174.79 lakh shares representing 26 per cent stake in Alstom India Ltd for Rs 440.32 per equity share, aggregating to Rs 769.64 crore.