Philips Electronics India Ltd, the health care and well being product company, has decided to buy out 3.5% of the minority share holding by paying Rs 260 per share, well above the previous open offer of Rs 135 per share, in 2003.
Philips will pay a total amount of Rs 180 crore for 6,923,076 shares, which is 9.9% of the total equity.
The buy-back offer will also provide an opportunity for the promoter of the company, Koninklijke Philips Electronics NV, which holds 96.5% to have a proportional share in the buy-back scheme–not more than 9.5% of the issued share of the capital.
For the promoters, the gain will be maximum of Rs 160 crore if none of the minority share holders exercises his/her rights. In that case, promoters holding will come down by a few points. In the 78 th annual general meeting one of the resolutions was the buy-back proposal.