India“s Gujarat Glass Ltd. said it would make a mandatory offer to all shareholders of Ceylon Glass Co. Ltd. after it acquired a 46.06% stake in the Sri Lankan glassmaker.
“Gujarat Glass Ltd. has a…
India“s Gujarat Glass Ltd. said it would make a mandatory offer to all shareholders of Ceylon Glass Co. Ltd. after it acquired a 46.06% stake in the Sri Lankan glassmaker. “Gujarat Glass Ltd. has acquired 12.76 million shares of Ceylon Glass amounting to approximately 46.06% of the issued share capital of the said company,” Gujarat Glass said in a letter to the Colombo Stock Exchange. “Gujarat Glass will make a mandatory offer for all the remaining shares of Ceylon Glass in terms of the company takeovers and mergers code at a price of Rs 20.50 (29 US cents) per share,” said the company, which is part of India“s Piramal group. “Gujarat Glass is not acting in concert with any person who owns shares in Ceylon Glass,” the letter added. Brokers said earlier that Sri Lanka“s DFCC Bank had sold a 39.49% stake in Ceylon Glass to Gujarat Glass on the Colombo Stock Exchange. They said some 12.7 million shares of Ceylon Glass were sold at an earlier agreed price of Rs 20.50 per share. DFCC still holds a 10% stake or one millon shares in Ceylon Glass, the government has some 7.9% and Japan“s Mitsui Corp. 5.2%. The rest is with the public. The Gujarat Glass statement said the Indian firm had an option with DFCC to purchase as much as the 10% stake in Ceylon Glass held by the development finance institution if it needed to obtain a 51% stake.