Asahi (I) open offer to acquire shares at Rs 11

Our Corporate Bureau

Mumbai, Sept 20: Asahi India Safety Glass Ltd (AISGL) is making an offer to shareholders of Float Glass India Ltd (FIL) to acquire up to 85,15,015 shares at Rs 11 per share.

The open offer follows AISGL’s decision to purchase Japan’s Asahi Corporation’s 75-per cent holding in FIL. The board of AISGL, at its meeting, approved the proposal to acquire FIL’s Rs 5.85 crore, fully paid up shares, representing 75 per cent holding from Japanese company Asahi India Ltd (AIL), AISGL notified the BSE on Thursday.

As per the notice, the acquisition and consequent open offer are subject to statutory approvals, including the approval of the Securities and Exchange Board of India.

Asahi Glass Co Ltd, a co-promoter and the single largest stakeholder of FIL, increased its stake in FIL from 49 per cent to 75 per cent early this fiscal. Asahi Glass Company had entered into an agreement to acquire the entire equity and preference share holding of its joint venture (JV) partners ACC, Tata Engineering and Tata International, which divested their combined stake of 26 per cent in FIL.

FIL is also believed to be looking at another round of financial restructuring, or even examine the option of roping in a strategic partner. This deal followed the decision of the three JV partners to concentrate on their core business. Pursuant to this acquisition, Asahi plans to review the existing operations of FIL and evaluate measures to improve its performance and financial viability.