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Citigroup
to buy back e-Service at Rs 800 per share
13 April 2004
Mumbai:
Citigroup has announced that it will buy back the
shares e-Service International Ltd at Rs 800 per share.
This is 27 per cent higher than the shares' closing price
on April 8. The stock rose to Rs 800 on the BSE yesterday
and closed at Rs 777.75; about 24 per cent up from its
previous close of Rs 630 a share.
The acquisition of the outstanding e-Serve shares would
be made by Citibank Overseas Investment Corporation, a
wholly-owned subsidiary of Citigroup, through a shareholder-led
reverse book-building process as per the new SEBI de-listing
guidelines, a company release said.
Citigroup said that it might not go ahead with the offer
if the final price as determined by SEBI's delisting guidelines
works out to more than Rs 800. At that price, the group
estimates the purchase would cost about Rs 550 crore.
A Citigroup spokesperson said the deal would help the
company increase operational flexibility because it is
e-Serve's largest shareholder as well as sole customer.
 "We
believe it is a fair price having determined this in consultation
with financial advisors and merchant banker," the
Citigroup spokesperson said.
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