Prodair Corp will acquire these shares from the promoter group of Industrial Oxygen, which currently holds 76.1 lakh shares, representing 73.36 per cent of the share capital of the company. The shares will be acquired at Rs 375 each.

Prodair plans to make an open offer to all public shareholders of Industrial Oxygen at a price of Rs 375 per share. The equity of the US-based corporation can go up to around 46 per cent through such an open offer, calculations show.

The offer price of Rs 375 pe share is higher than the current market priceof Rs 340 per share. The "frequently traded" shares and the average of the weekly high and low of the closing prices for the Industrial Oxygen equity shares for the26-week period ended January 22 is Rs 303.95.

Consequent to the open offer both the promoter group and the acquirer will have equal shareholder in the company, following which the joint promoters propose to approach the stock exchanges to delist the scrip. Also, as per the agreement entered into by the acquirer and teh promoter group, Industrial Oxygen will be jointly managed by the two groups. PK Jain will continue to be the managing director until March 31, 2004, and each group will continue to have three nominees each on the board of directors.

Industrial Oxygen Co is one of teh leading manufacturersof industrial gases in India and has 17 plants spread throughout the country. For the year-ended March 31, 1998, the company registered a turnover of Rs 152 crore and a profit after tax of Rs 16.7 crore.

A press release issued by Industrial Oxygen on the issue on Monday quotes Air Products president (Europe) Ron Sullam as saying: "Air Products has a long-standing relationship with Industrial Oxygen andwishes to enter the industrial gas market in India. We consider that such an invsetment in Industrial Oxygen is the most desirable method of doing so."