Prism Impex's Rs3.65 a share open offer for Monotype gets lukewarm response

The open offer by Prism Impex Pvt Ltd and Sushil Kumar Khaitan to the shareholders of Monotype India Ltd to acquire a 20 per cent additional stake in the company has received lukewarm response with offers of a total 474 shares (or 0.03 per cent stake) received till the close of offer on Friday.

Prism Impex Pvt Ltd, headed by Sushil Kumar Khaitan, had offered to acquire 3,29,700 fully paid-up equity shares of Rs10 each, representing 20 per cent of the current issued and paid-up equity share capital of Monotype India, at a price of Rs3.65 per fully paid-up equity share, payable in cash.

PIPL and Khaitan had made the original public announcement of the offer on 19 July 2010 and had issued a corrigendum to the announcement on 11 October 2010, as per Securities and Exchange Board of India take over regulations.

The open offer to acquire 3,29,700 shares of Monotype India received eligible acceptances for sale for only 474 (or 0.03 per cent) shares.

The Khaitans had acquired a 74 per cent stake in Monotype India through a share purchase agreement before making the open offer as per SEBI regulations.

PIPL had bought a total of 12,23,231 shares, forming 74.20 per cent of the company's share capital.

Had the offer been fully accepted by shareholders, the holdings of PIPL and Khaitan in Monotype India would have gone up to 94.20 per cent against the current 74.03 per cent, the company said in its filing with the Bombay Stock Exchange (BSE).