Golden Tobacco Shares Up 5.4% on Open Offer

Source from:  Express India 11/16/2009

Mumbai: Shares of Golden Tobacco Ltd were up 5.45% on the Bombay Stock Exchange (BSE) to close at Rs 114.85, a 52-week high, in a slightly positive Mumbai market on Friday. This was after the company, promoted by Delhi-based industrialist Sanjay Dalmia, said that Pramod Jain, a minority shareholder in the company, made an unsolicited open offer to acquire 25% stake at Rs 101 a share.

According to the statement to the BSE, the acquirers are making this voluntary open offer to acquire 44,02,201 fully paid-up equity shares of Rs 10 each, representing 25% of the issued equity share capital, from the equity shareholders of the company, at a price of Rs 101 per share payable in cash. This offer is voluntary and has not been triggered by any agreement by the acquirers with any person for the purpose of acquisition of shares in the target company, according to the statement. According to industry analysts, GTC is facing a hostile takeover attempt by Pramod Jain for quite some time. "The Dalmias are also fighting a legal battle in the Bombay High Court against L&T Finance. And now, Pramod Jain is making further trouble for GTC," said an industry analyst based in Mumbai. The company, makers of cigarette brands like Panama, Chancellor and Golden, had a net profit of Rs 85 lakh on a net sales of Rs 130.6 crore for FY 2008-09. Enditem