A pack of companies controlled by NRI businessman C Sivasankaran promoted Siva Group have picked up close to 10% stake in solvent extraction company Ruchi Soya Industries Ltd, promoted by the Shahra family. The shares have been mopped by a Siva Group company VS Net Ltd, along with Baghmar Finlease Ltd, Aiwo Ltd and Ratha Infrastructure Pvt Ltd through a mix of off-market and open market deals. The move has kindled speculation among the market players about a plausible takeover bid by the Siva Group for Ruchi Soya Ltd. Sivasankaran is best known for hitting headlines by making lucrative deals by buying and selling companies at the right time and at the right price.
?Going by his past track record, the investment may either be a pure financial deal in a growing company with good fundamentals and valuations or it may end up in the Siva Group buying a controlling stake in the company,? said an analyst with a Chennai-based brokerage house who does not wish to be named. ?Anyway, the group needs to buy an additional 5.7% stake in the company to trigger the open offer code set by regulator Sebi. As per the current norms, the open offer clause is triggered only if an acquirer buys 15% or more stakes in a company. The market watchdog, in December last, had hinted at changing the entire takeover regulation code lock, stock and barrel, including the trigger limit and fixing of offer price.
