Tags:
Journalism of Courage
The younger Ambani is moving fast after the settlement. Anil D Ambani (ADA) and AAA Enterprises Pvt Ltd, a company promoted by ADA, have collectively made an open offer to RCL shareholders to buy 20 per cent of the finance company that came to him as part of the settlement of an ownership dispute at the Reliance Group with his older brother.
On Monday, the RCL stock shot up 25 per cent to Rs 294.20. The offer made by the acquirers is at a 25.32 per cent discount to the market price (Rs 289 today) and the big question is that who will come forward to tender shares in the offer.
The offer opens on August 11, 2005, and closes on August 30, 2005.
The RCL board at its meeting held on June 19, 2005 decided to allot 6 crore fully paid up equity shares of Rs 10 each on preferential basis. This allotment will be made at a price of Rs 228 per share including a premium of Rs 218 per share aggregating Rs 1,368 crore. The board also decided to allot 4.10 crore warrants entitling the warrant holders to apply for equity shares of Rs 10 each of RCL at a price of Rs 228 per share including a premium of Rs 218, again on preferential basis.
RCL also proposes to issue 2.90 crore equity shares to financial investors not connected with the acquirers. As a result of this preferential allotment of 6 crore shares, the acquirers will take maximum 32.03% or minimum 27.74% of the voting rights of RCL depending on the number of shares issued to the financial investors.
Prior to this offer, Anil Ambani held 1,80,933 shares representing 0.14 per cent of RCL’s equity while Tina Ambani, one of the directors of AAA Enterprises also held an equal number of shares.
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Mixed fortunes for Reliance stocks
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| Mukesh group | |||
| Tuesday | % rise | ||
| IPCL | 169.10 | .89% | |
| RELIANCE | 645.90 | 2.46% | |
| Anil group | |||
| REL ENERGY | 655.30 | -0.45% | |
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RCL |
289.45 | -1.61% | |
