Jaypee to make Andhra Cem open offer

Jaypee will make an open offer to acquire up to 26 per cent stake in Andhra Cement.

Jaypee Development Corporation will make an open offer to acquire up to 26 per cent stake in Andhra Cement which may require over Rs 91 crore.

“The acquirer is making an open offer to acquire up to 76,315,328 equity shares of the face value of Rs 10 each,being 26 per cent of the expanded paid up equity share capital of the target company,” Andhra Cement said in a statement.

The offer would open on December 26 and close on January 6,2012.

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Jaypee Development Corporation (JDCL) had inked an agreement with a clutch of Andhra Cement promoters/promoter group firms on November 15,to acquire 19.65 crore equity shares,or 66.64 per cent of the expanded paid up share capital. This includes 4.81 crore shares from the promoter/promoter group firms.

Andhra Cement’s shares are listed both on the BSE and the National Stock Exchange (NSE),but NSE suspended the trading in its share with effect from November 3 due to non-compliance of certain provisions of the listing agreement.

JDCL said the main object of the acquisition is to acquire management control,mobilise funds by infusing equity capital to revive,restructure and to meet the operational requirements of Andhra Cement.

JDCL has “adequate resources” and has made firm financial arrangements for financing the acquisition.

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