Pallonji to buy out Sanwarmal from FGL for Rs 93/share

Mumbai, January 23: | Updated: Jan 24 2002, 05:30am hrs
As expected,the curtains have come down over the battle for the control for Forbes Gokak Ltd (FGL) between the Pallonji Mistry group and Pawan Kumar Sanwarmal group. Pawan Kumar Sanwarmal has withdrawn from the long drawn battle at the FGL counter.

Truce-talks which were going on between the two warring groups since last few days ended on Wednesday with Mr Sanwarmal decided to sell his 18.43 lakh shares the to Mistry group at the revised offer price of Rs 93 per share.

The stake-sale was executed through negotiated deals which was the last day for revising the offer price. The Mistry group revised their offer price to Rs 93 from Rs 92 and Mr Sanwarmal, instead of revising his counter offer price from Rs 92 to further, decided to tender all his stake to the Mistry group.

With the acquisition of 14.80 per cent holding of Mr Sanwarmal, the stake of Mistry group in FGL is expected to increase in excess of 75 per cent.

Meanwhile, Sterling Investment Corporation Pvt Ltd — part of the Mistry group — purchased 19,923 or approximately 0.16 per cent of Forbes Gokak Ltd through open market transactions on the Stock Exchange, Mumbai at a price of Rs 92.57 per share.

The company further said that it had purchased 11,56,830 or 9.29 per cent of FGL on a ‘spot-delivery’ basis at an average rate of Rs 91.13 per share.

As per the peace package reached between the two factions Mr Sanwarmal will receive the consideration of Rs 17.14 crore for 18.43 lakh shares held by him in FGL.