The Hindu Business Line : Century Enka buys 30 pc stake from Accordis

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.