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Akzo arm acquires 92% in Centak Chem; makes 2nd offer

Jayanta Mallick

KOLKATA, Aug. 9

AFTER an open offer, Akzo Nobel Chemicals International BV (ANC), a `sub-holding' company for joint ventures and subsidiaries of Akzo Nobel outside the Netherlands, has acquired 92.99 per cent in Centak Chemicals Ltd.

However, since the acquisition fell short of the ANC's target of 100 per cent holding in Centak, it has come out with a second offer for the balance 7.01 per cent at a price of Rs 200 per equity share of Rs 10. The offer will open on August 13 and close on February 12, 2002.

ANC has also asked for delisting of Centak shares from the Bombay Stock Exchange, the Calcutta Stock Exchange, and the Vadodara Stock Exchange. In the first offer letter, ANC had mentioned that the objective of the offer was consolidation of business and delisting of Centak's shares. It is also permitted for trading on the NSE.

JM Morgan Stanley is the manager to the second offer and ABN Amro Bank NV is the depository participant for the acquirer. For deposits of dematerialised shares, the escrow account is in the name of MCS Ltd.

Till recently, Centak was a joint venture between Akzo Nobel and the BK Birla group. The first open offer was for 12,25,900 shares representing 25.02 per cent in Centak at the offer price of Rs 200 per share. The offer had opened on May 18 and closed on June 16. Before the offer, ANC held the remaining 74.98 per cent.

Earlier, ANC had bought out the BK Birla group's 34.98 per cent stake in Centak. The buy-out was completed on April 16 this year. It may be mentioned that ANC had bought the Centak shares from BK Birla group also at Rs 200 each.

Among its two major business interests in India, Akzo Nobel has decided to take full control of Centak. For Infar India, another joint venture, Akzo Noble's immediate aim is to hike its stake to 75 per cent from a little over 51 per cent.