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Journalism of Courage
MUMBAI, December 12: The offer of GE Capital to sell 30 per cent stake in pAAM Pharmaceuticals Ltd (PPL) has come under the scrutiny of the Securities and Exchange Board of India (SEBI). The SEBI move is to ascertain whether GE – which got the stake in Paam following default of loan – offer attracts the provisions of the takeover code.
Said a SEBI official, "we’ve sought details about the offer. After collecting the details, we’ll take a view about the offer." The SEBI move follows a public announcement by GE Caps for auctioning off 30 per cent of its holdings in Paam Pharma. As per the SEBI takeover code, any party which acquires shares more than 10 per cent of the equity capital of a company will have to make an open offer to buy shares from other shareholders as well. GE Caps had acquired the shares as a result of failure on the part of Paam Pharma to pay back a loan taken against pledge of its shares.
