New Delhi, Nov 24: Chimayo Chains is providing an exit opportunity to shareholders of Confidence Trading Company. Chimayo Chains has announced an open offer to pick up 10,000 equity shares of Confidence Trading Company at a price of Rs 35 for each fully paid up share. The open offer will cheer the shareholders as the stock was not traded on the Mumbai Stock Exchange for the past six months.The open offer from Chimayo Chains is in compliance with the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. Chimayo Chains has acquired 38,901 shares of Rs 10 each aggregating Rs 3.8 lakh (which is 77.8 per cent of the total paid up capital of Rs 5 lakh) through a negotiated price of Rs 35. The offer price is 58.37 per cent higher than the book value of Rs 22. Chimayo Chains has acquired the 77 per cent stake from Karthik Investments Trust Ltd, New Ambadi Investments, Ambadi Enterprises, Teeayye Investments, Carborandum Universal Ltd, Breeze Investments Pvt Ltd and Coromandel Holding & Minerals Ltd.
For fiscal 1999, Confidence reported a net profit of Rs 9,000 on a total income of Rs 1.37 lakh. For the six months ended September 30, 1999, the company incurred a net loss of Rs 25,000 on a total income of Rs 32,000. The offer opens on January 5, 2000 and closes on February 22, 2000.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.