Dema Glass sells stake in CG Glass

Royal Philips Electronics NV“s plan to delist CG Glass from the bourses was boosted by Dema Glass deciding to sell its 6.78% stake in the company.
The Dutch consumer electronics major has made an op…

Royal Philips Electronics NV“s plan to delist CG Glass from the bourses was boosted by Dema Glass deciding to sell its 6.78% stake in the company. The Dutch consumer electronics major has made an open offer for 53.2% stake in CG Glass following Royal Philips“ 46.8% acquisition. Sources at DSP Merrill Lynch, Philips“ financial advisors to the transaction, said: “Dema Glass, which holds about 7% in CG Glass, has decided to participate in the open offer. The response to the open offer has been quite encouraging and based on the current trend, we expect Royal Philips will be able to achieve a 90% stake in CG Glass by the end of the open offer.” Royal Philips made an open offer for the outstanding 53.2% equity shares of CG Glass from the public at a price of Rs 13.75 per share. The offer opened on 12 September and closed on 11 October. In July, Philips entered into an agreement with Crompton Greaves (28.8%) and CDC Group Plc (18%) of London to acquire their entire stake in the company. Under the stock exchange listing rules, if the promoters acquire 90% in a company they can delist it from the bourses. As per the law, after the closing date of the open offer, the company has to provide one more opportunity to shareholders within three months and only then can the company be delisted. Royal Philips aims to gain a 100% ownership in the company. CG Glass, which produces glass shells, tubular sheets and glass tubing, sells a substantial portion of its output to Philips India“s lighting division. The company, which has a total paid-up equity base of Rs 18 crore, has recorded cumulative losses of Rs 40 crore over the past few years.