Takeover battle for GESCO Corpn too

MUMBAI, OCT 19: The stage is set for yet another takeover battle with the Delhi-based Renaissance Estates Ltd (REL), a wholly owned subsidiary of Utkal Investments Ltd (UIL), planning to make an open offer to acquire 45 per cent in GESCO Corporation Ltd, engaged in managing, developing and operating commercial properties at a price of Rs 23 per share payable in cash. The present promoters, the Sheths of Great Eastern Shipping have only 15 per cent stake in the company and have vowed to salvage the company from any hostile bids.

Renaissance together with Sanjay Bakshi, a person acting in concert and also a director of REL and UIL, currently hold over 16.66 lakh equity shares of Rs. 10 each, representing 5.8 per cent of the equity capital in the target company.

The offer price of Rs. 23 per share is higher than Rs 13.36 which is the average of the weekly high and low of the closing share prices of GESCO as quoted on the National Stock Exchange, according to a public announcement made by the manager to the offer, ASK-Raymond James & Associates Ltd to GESCO shareholders.

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GESCO is also listed on the Bombay Stock Exchange. The offer, which would open on November 24 and close on December 23, 2000, is subject to necessary approval from the Reserve Bank of India for acquisition of shares from NRI shareholders.

REL, which has similar operations as GESCO, and Calcutta-based non banking finance company, UIL are controlled by the A H Dalmia group that has been managing large cement and granite operations.