LIC's open of­fer for stake in IDBI be­gins on Dec 3

Financial Chronicle - - FUNDAMENTALS, POLITICS - FC BUREAU

LIC's open of­fer to pur­chase shares from the mi­nor­ity share­hold­ers of IDBI Bank will kick-start from De­cem­ber 3, IDBI Bank said on Thurs­day.

The open of­fer, at Rs 61.73 per eq­uity share, will close on De­cem­ber 14.

LIC has of­fered to ac­quire 2,04,15,12,929 eq­uity shares, rep­re­sent­ing 26 per cent of the fully paid-up eq­uity cap­i­tal of IDBI Bank as per the open of­fer process in ac­cor­dance with Sebi reg­u­la­tions, IDBI Bank said in a reg­u­la­tory fil­ing.

The open of­fer is in con­nec­tion with the LIC's ac­qui­si­tion of 51 per cent con­trol­ling stake in the state-owned IDBI Bank.

As per Sebi takeover code rules, an ac­quirer com­pany has to give an open of­fer to the share­hold­ers of the tar­get com­pany on ac­quir­ing shares or vot­ing rights of 25 per cent or more, so that they get an exit route or earn profit by way of sell­ing their eq­uity in the tar­get com­pany. The LIC will buy shares in the open of­fer at a price of Rs 61.73 per share.

As on date, he ac­quirer (LIC) holds 67,36,20,000 eq­uity shares rep­re­sent­ing 14.90 per cent of the vot­ing rights in tar­get com­pany (IDBI Bank).

At a price con­sid­er­a­tion of Rs 61.73 per eq­uity, as­sum­ing full ac­cep­tance un­der the of­fer for 2,041,512,929 shares (or 26 per cent), the to­tal payable by the ac­quirer (LIC) comes out to be over Rs 126,02.25 crore.

LIC said it will pay the share­hold­ers par­tic­i­pat­ing in the open of­fer for sell­ing their stake in IDBI Bank on De­cem­ber 31.

As on date, LIC holds 67,36,20,000 eq­uity shares rep­re­sent­ing 14.90 per cent of the vot­ing rights in IDBI Bank.

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