The Hindu Business Line : TVS to make 2nd open offer for Harita Fin

AS TVS Motor Company's open offer for buying out the 50.30 per cent stake in the group company, Harita Finance Ltd, from the public has met with lukewarm response, it is mulling a second open offer.

The first offer was open between April 29 and May 28, when the group picked up around 18 per cent of the company' equity from the public.

Company sources told Business Line on Monday that it was not possible to estimate when the second offer would come, given the formalities to be gone through, but said that the offer would be at the same price - Rs 10 per share. If the offer is successful, the TVS group will own the entire stake in Harita Finance, whose name, incidentally, is to be changed to TVS Finance.

At a news conference here on Monday, the TVS Motor Managing Director, Mr Venu Srinivasan, declined to comment on Harita Finance, but said that the company would be used exclusively to provide finance for TVS Motor's customers.

Meanwhile, Harita Finance has informed stock exchanges that the board of directors, at its meeting held on June 28 has "proposed to make a preferential offer to the promoter group companies namely TVS Motor Company Ltd & TVS Electronics Ltd for 1,35,00,000 and 1,48,40,000 equity shares of Rs 10 each at par respectively." The board has also proposed to issue 3,03,10,000 - nine per cent non-cumulative non-convertible redeemable preference shares of Rs 10 each for cash at par on private placement basis to promoter group company/ companies subject to the requisite approvals.

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