BASF to make open offer for 22 per cent in Indian arm

Mumbai: German chemicals major BASF SE will make an open offer for acquiring 22 per cent outstanding stake of its Indian subsidiary, BASF India, at Rs274 a share.
BASF SE will purchase up to 6,289,591 fully paid-up equity shares of BASF India Ltd (constituting 22.31 per cent of its issued share capital) at an offer price of Rs274 per share, the company said in filing with the Bombay Stock Exchange.

The total consideration would amount to Rs172.33 crore, assuming that the offer receives full acceptance, BASF said in the filing.

This price represents a premium of 22 per cent to the average price of BASF India during the two weeks preceding this announcement and a premium of 16 per cent to the minimum price of Rs236.70.

BASF SE made the open offer as per the Securities and Exchange Board of India (SEBI) guidelines - Regulation 11(1) of the SEBI (Substantial Acquisition of Shares and Takeovers), Regulations 1997, the promoter company said in a filing with the Bombay Stock Exchange.

BASF SE holds 52.69 per cent stake in BASF India, which will increase to over 74 per cent if the open offer gets full acceptance.

According to the public announcement, the offer will begin on 9 July 2008 and shareholders have until 28 July 2008 to tender their stock. BASF SE will file the draft letter of offer with SEBI shortly.

The offer schedule, however, is subject to change depending on the time taken for SEBI's regulatory process. BASF is consolidating its Indian operations to extend its market position in the growing Indian chemical sector. BASF's portfolio ranges from oil and gas to chemicals, plastics, performance products, agricultural products and fine chemicals. Shares of BASF India were trading at Rs242.20, up 0.06 per cent on the BSE in morning trade.