Mumbai: Sandvik Asia, the Indian arm of Sandvik AB of Sweden, is on the verge of becoming a 100-per cent subsidiary of its parent.
Sandvik AB has already acquired a total of 89 per cent stake in the company after it gave an open offer to the shareholders to sell their stock at Rs 850 each. The open offer was made sometime in March this year, when Sandvik AB had decided to acquire an additional 26.78 per cent stake in Sandvik Asia, to make it its wholly-owned subsidiary. The open offer was made at Rs 850 per share.
Sandvik Asia is a leading player in the tools and tooling systems for metalworking and has done well over the years. While the stock attracted market fancy in the past, it lost its lustre after the new economy shares became the darlings of the market.
Foreign promoters are not happy with the discounting stock markets gave to their shares – they decided to acquire the entire floating stock and got their shares delisted, like many other multinationals such as Otis Elevators.
The foreign promoters have managed to acquire 16 per cent and are still short of 10.78 per cent before they can fully acquire the company. In the meantime, the Sandvik Asia scrip has done well on the bourses despite an overall slump. It has touched a high of Rs 835.