Financial Daily from THE HINDU group of publications
Friday, Dec 30, 2005


Group Sites

Corporate - Buyback

Century Enka buys 30 pc stake from Accordis

Jayanta Mallick

Kolkata , Dec. 29

CENTURY Enka has completed a buyback deal with its foreign promoters, Accordis Overseas Investment BV, of 85.93 lakh shares representing 30 per cent of the paid-up capital of the company for a sum of around Rs 105 crore.

With this, the stake of Accordis in Century Enka will drop to 8.36 per cent, marginally higher than the AV Birla group's holding of 7.91 per cent in the company.

Currently, TGS Investment & Trade Pvt Ltd, an AV Birla group outfit, holds 7.82 per cent of the total paid-up equity of Rs 28.64 crore and Ms Rajashree Birla, mother of Mr Kumarmangalam Birla, holds 0.09 per cent.

Kesoram Industries, a BK Birla group company, holds 4.68 per cent of Century Enka's equity.

Mr B.K. Birla, Director of the company, told Business Line today that the deal has been put through. "The remaining loose ends would be tied up in a week," he added.

He also said that there was no transfer of shares from Kesoram Industries to the AV Birla group now. "But the control of Century Enka and Century Textiles would pass on to the AV Birla group."

Since the deal is through a buyback exercise, the paid-up capital of the company would be reduced by around Rs 8.6 crore eventually.

According to group sources, two thirds of the buyback cost has been funded by the company, and the rest through bank borrowings.

Earlier, by increasing their stake in Pilani Investments, the BK-Kumarmangalam combine's control over Century Textiles had been secured, Mr Birla said.

More Stories on : Buyback

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ethypharm to invest $3 m to upgrade plant

Bajaj Auto plans 2-3 variants next year
Gas reserves verified in Myanmar offshore block: OVL
Century Enka buys 30 pc stake from Accordis
ICAI revises accounting norms on employee benefits
IRFC raises Rs 450 cr thru bonds issue at 7.74%
CCEA okays Braithwaite revamp
Falcon Tyres to seek shareholders nod
Saneron sets up Indian arm for stem cell research
Jain Irrigation to spend Rs 225 cr on capacity expansion
Company Affairs Ministry bets on e-governance — To facilitate transparency in operations
Wockhardt Hospitals in pact with US insurer
Actis invests $23 m in auto components firm Sandhar
Publisher of Dainik Jagran plans IPO by Jan
Lanka IOC hoping for quick payment of subsidy bill
Udayan Bose joins Reliance Cap board

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line