Shareholders will be paid Rs 139 per share. The open offer is for acquiring 18.33 lakh shares of Wheels India representing 18.58 per cent of its paid-up capital of Rs 9.87 crore.

The open offer is necessitated consequent to the acquisition of Dunlop Holdings Ltd's 35.91 per cent stake in the company by Titan Europe on January 14. Dunlop Holdings, UK was Wheels India's partner since inception. In 1984 Dunlop Holdings was acquired by BTR Plc which in the recent years had undergone significant restructuring.

As the wheel business had very limited relationship with its other businesses, BTR Plc decided to divest its stake in Wheels India. Titan is a leading manufacturer of wheels and tyres for earthmoving and agricultural equipment, operating from manufacturing facilities in the US, the UK, Germany, France and Italy with total sales close to $ 800million.

The open offer does not have any minimum level of acceptances. According to the scheme, Sundaram Finance would first acquire five per cent of the valid acceptances and the balance would be acquired by Titan.

After the open offer, the management of Wheels India will continue to be with the TVS group and Titan would have representation in the board. Titan's presence is expected to give Wheels India a stronger presence in the construction equipment and agricultural wheels business in India. Wheels India will also enter into an agreement with Titan Europe for export marketing (exports currently is only 15 per cent of total sales) and technical tie-ups.

The specified date for mailing the letter of offer is January 29, 1999.