BP Amoco to pick up 20% Foseco stake

Pradeep Rane
25 September 2001

Mumbai: The UK-based BP Amoco will soon make an open offer to acquire a 20 per cent stake in Foseco India at a price of Rs 226 per share even as its offer for Castrol India opened on 25 September.

The open offer follows the recent securities appellate tribunal (SAT) ruling directing the UK company to make an open offer to the shareholders of Foseco India and Castrol India. The UK company is acquiring the 20 per cent stake in Castrol India at a price of Rs 350.08 per share.

BP Amocos appeal against the SAT order on paying 15 per cent interest for the delay in making the offer is pending with the Bombay High Court. The UK company is acquiring the 20 per cent stake in Castrol India at a price of Rs 350.08 per share.

BP Amoco had bought out Burmah Castrol globally and, through this takeover, it also indirectly gained control of Castrol India and Foseco India.

The announcement of the takeover was made on 14 March 2000. Though it has made an open offer in the case of Castrol India, in Foseco's case BP Amoco had asked for an exemption because it did not intend keeping Foseco and is in the process of selling it.

It had asked for six months till 7 July 2001 to complete the Foseco hive-off globally, but the Sebi takeover panel had not granted an exemption - Sebi had directed BP Amoco to make a public announcement of the open offer within 45 days.