The parent company had announced its decision to make an open offer at a price of Rs 110 on April 17, 2002. However, the stock rallied past the offer price. The offer, which opened on June 5, 2002, seeks to acquire the entire public holding in Ciba Specialty Chemicals (India).
A spokesperson of CSCHI said: “This offer was made at a 57 per cent premium to the average price of the 26-week prior to the announcement. Considering the financials of Ciba Specialty Chemicals (India) and its stock price performance, this is a fair exit value to the shareholders.”
Meanwhile, on June 3, the board of the Indian arm had recommended a dividend of Rs nine per share (including a special dividend of Rs 4.5 per share) for the fiscal ended March 31, 2002. This dividend, if approved by the shareholders, would also be paid to the existing shareholders who tender their shares in the open offer, effectively making the offer price as Rs 119, a company release said. In the event of CSCHI’s shareholding crossing 90 per cent through the open offer, it may seek the delisting of the Indian arm. The shares are currently listed on the BSE and NSE.