Financial Daily from THE HINDU group of publications
Saturday, Aug 03, 2002
Final open offer for Axles India
CHENNAI, Aug 2
SPICER Heavy Axle Holdings Inc, Wheels India Ltd and Sundaram Finance Ltd have made a "second and final offer to all the balance public equity shareholders" of Axles India, for the purchase of 7.34 lakh equity shares, representing 8.05 per cent of the voting capital, the stock markets have been informed.
In April, the company had come out with an open offer for buying back 9.04 per cent of equity from the public at a price of Rs 7 per share.
This is really the third time that Axles India shareholders are getting an opportunity to sell their shares in an open offer.
In December 1999, Spicer Heavy Axle Holdings Inc, a wholly-owned subsidiary of Dana Corporation, along with Wheels India Ltd and Sundaram Finance Ltd, made an open offer at Rs 24.50 per share for 20 per cent in Axles India.
The offer was made consequent to Spicer Heavy Axle Holdings entering into a stock purchase agreement with Eaton Ltd to acquire 16,32,000 equity shares of Rs 10 each of Axles India (representing 40 per cent of the paid-up capital of the company) at Rs 24.50 per share.
It was through the issue that the promoters picked up 90 per cent of the company's equity.
Dana Corporation is a world leader in the axles industry and has a presence in India in axles business through Spicer India which manufactures axles for light vehicles.
In November 2000, Axles India came out with a rights issue for Rs 6.2 crore.
The money was used for redeeming high-cost debt and to part-finance a `drive heads' project.
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