Carrier Corp hikes stake in Indian arm to 86 per cent

Our Corporate Bureau

Mumbai, Aug 3: Carrier Corporation has increased its stake in Carrier Aircon to 86 per cent from 51 per cent following the completion of its open offer to buy 49 per cent stake in the Indian venture at Rs 100 per share. Carrier Corporation has, however, missed the crucial 90 per cent mark, which allows a company to be delisted.

Carrier Corporation, through its wholly-owned subsidiary, Carrier International, had made the offer which opened on July 2 and closed on July 31. The cost of the buy-back for the company is Rs 114.8 crore.

Analysts say that the only option that the parent company has in the next six months is to come up with another open offer.

The company can offer the same price if the offer is made in the coming six months.

The parent company will shortly decide on its future course of action, sources said. According to Sebi rules, the company cannot make a preferential issue of shares.

The 14 per cent of equity shares which has not been tendered during the open offer are held mostly by FIs, sources say.

Carrier Corporation’s spokesperson said, “We are pleased with the response to the offer and are happy to note that the shareholders found the offer attractive.

In order to maintain a competitive edge and build upon our leadership position in the Indian market, we are committed to providing latest technology, new products and the financial resources needed by Carrier Aircon.”

The offer was managed by leading financial management and advisory company — DSP Merrill Lynch.