Sardas Working Towards Open Offer For BSL

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Kolkata, June 12: : The fight for the control of BSL Limited has now come out in the open with city-based business house Sardas declaring that they were working on the timing for an open offer and keen to acquire management control in the company.

Mr Ghanshyam Sarda of Sarda group told on Wednesday that the group was keen to acquire management control in BSL, adding that the percentage stakeholding required would depend upon the market price of the shares.

Though Mr Sarda said that the timing of the open offer has not been finalised yet but added that the financial analysts of the group were currently working out the formula for an open offer. He also said that the market price was very lucrative for the company’s scrip.

The Sarda group had recently created a stir in the market by acquiring 12 per cent stake in the LM Jhunjhunwala-Arun Churiwal controlled BSL Limited, formerly Bhilwara Synthetics Limited. This prompted the promoters to hike their stake in the company by three per cent to nearly 35 per cent to counter the takeover bid.

The Sarda group has already informed the stock exchanges and the Securities & Exchange Board of India (SEBI) about its present holding in BSL.

Mr Sarda said that though the exact quantum of holding which the group would like to obtain has not been decided yet, however “we would like to get 60 to 70 per cent, but it depends whether the market allows us to do that”. Mr Sarda said that any future move by the group in this regard would be duly intimated to the concerned authorities.

Apart from the 35 per cent stake held by the promoters and 12 per cent now with Sardas the balance stake in BSL was being held by the institutions and public. To a query why the group was keen to get management control in BSL, Mr Sarda said that the brand was strong. Besides that, the company had good reserves. The Sardas have interests in chemicals, jute, and textile trading. “If there is a good opportunity, then we will definitely be interested in BSL”, Mr Sarda said. The business group controls seven jute mills in the city and suburbs, besides owning Kolmak Chemicals Limited. Incidentally Sardas’ move to take control of BSL comes nearly a year after another city-based jute-baron Arun Bajoria’s failed takeover bid for Nusli Wadia controlled Bombay Dying.