US firm’s bid for stake in Silverline stalled

MUMBAI, Aug 25: The Securities and Exchange Board of India (SEBI) has barred Subra Holdings Inc, USA, from acquiring the shares in Silverline Industries Ltd (SIL) through the inter se transfer of shares belonging to one of the main promoters of SIL, who is also the main promoter of the US company.

Subra Holdings had applied to Sebi on April 28, 1997, for exemptions under Regulation 4 (2) of the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. The Sebi order rejecting the application was issued on July 29.

This means that Subra will have to make an open offer for at least 20 per cent of Silverline shares if it wants to buy the latter’s shares.

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This is the first case rejected by Sebi for exemption from making a public offer under the new takeover law. Four other cases seeking exemptions have been cleared earlier – those involving Abbott Labs, Malwa Cotton, Lupharma, Chowgule & Co.

SIL closed at Rs 27 and Rs 27.75 on the Mumbai and National stock exchanges respectively on August 21.