The stock price of Gujrat Ambuja Cement Limited (GACL) slipped on Monday on the back of apprehensions that a possible Securities and Exchange Board of India (Sebi) ruling in favour of an open offer could see it part with a huge amount. On the Bombay Stock Exchange (BSE), the stock of cement major slipped 3.5 per cent to close at Rs 156.20 as against its previous close at Rs 161.95. A total number of 40,747 shares of GACL were traded on the counter. Sebi orders BISL to compensate shareholders MUMBAI: The Securities and Exchange Board of India (Sebi) has asked Contact Consultancy, the acquirer of the BSEL Information Systems Ltd (BISL), to make a public announcement for the minority shareholders of BISL and pay the interest to these shareholders at the rate of 15 per cent per annum for the loss caused to them from August 1, 1997 till the date of actual payment of consideration to those shareholders who tender their shares in the offer. Sebi has fixed April 1, 1997 as the reference date to arrive at the offer price to be offered to shareholders. Sebi has also directed the acquirers to complete the formality of the open offer within 45 days from the date of order which was issued by the regulator on October 23, 2002. Sebi carried out an investigation into the possible violations of the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 in the matter of acquisition of shares of BISL by a group of related entities during the year 1997. (ENS) It currently trades close to its 52-week low of Rs 151.50 (on November 1, 2001). The fresh setback on the counter today follows concerns expressed by the market that if Sebi comes to the conclusion that GACL has, in fact, acquired management control over ACC, GACL’s cash position and balance sheet would be severely impacted. For, GACL would have to shell out a huge sum - an open offer at Rs 370 per share for a 20% stake would entail an outlay of an awesome Rs 1,260 crore. The outgo would be much higher as GACL would also have to pay interest on the offer price for the last three years. The Securities Appellate Tribunal (SAT) has ordered markets watchdog Securities Exchange and Board of India (Sebi) to take a re-look at the deal involving Gujarat Ambuja’s acquiring of 14.45% stake in cement major ACC. SAT in a statement on October 25, 2002 said that the market regulator had jumped to conclusions while stating that the acquisition of stake in ACC was not tantamount to a change in management control, and, therefore, did not trigger the takeover code. Sebi had reckoned earlier that the Tatas, despite having a 14.45% stake in ACC, India’s largest cement maker, did not exercise any control over the management of the company. And, therefore, a sale of stake to GACL did not result in a change in management control.
