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
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