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Philips open offer for CG Glass endsnews
Hari P K
13 October 2001

Mumbai: The open offer by Royal Philips Electronics NV (Philips) of the Netherlands - for the entire balance outstanding equity shares comprising 53.2 per cent of the total equity of CG Glass from the existing public shareholders at a price of Rs 13.75 per share - has ended on 11 October 2001.

The offer would enhance its holding to 100 per cent in CG Glass Ltd and lead to the delisting of the company. The offer price of Rs 13.75 per share is at a premium of 77 per cent over the six-month average price.

Philips had earlier entered into agreements with Crompton Greaves and the CDC Group (the promoters of CG Glass) to acquire their entire stake in the company. Under the agreements, Philips will buy the 28.8-per cent shareholding of Crompton Greaves and the 18 per cent shareholding of CDC Group in CG Glass at a price of Rs 13.75 per share. The purchase of shares from the promoters and the open-offer are subject to necessary statutory approvals.

The financial advisor to this transaction for Philips is DSP Merrill Lynch.

CG Glass, which produces glass shells, tubular sheets and glass tubing, has sold a substantial portion of its output to Philips Indias lighting division. The company was set up in 1992 as a joint venture between Crompton Greaves and CDC Group.

India is an important strategic market for Philips. The acquisition demonstrates its commitment both to India and to its lighting business in India. Philips India will now have sufficient capacity in place to ensure throughput, enhance its customer focus and improve its market position. Philips India, one of the largest customers of CG Glass, will continue to use a substantial portion of its production for captive consumption.

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Philips open offer for CG Glass ends