Date:11/08/2005 URL: http://www.thehindubusinessline.com/2005/08/11/stories/2005081102621500.htm

Back Ingersoll-Rand to buy out Indian arm at Rs 325 a share

Our Bureau

Mumbai , Aug 10

INGERSOLL-Rand Company Ltd on Wednesday announced its intention to purchase the outstanding publicly held shares of its Indian subsidiary Ingersoll-Rand India Ltd at a price of Rs 325 a share.

Ingersoll-Rand, through its wholly owned subsidiary Ingersoll-Rand Company, currently owns 74 per cent in Ingersoll-Rand India.

"The company seeks to obtain full ownership of Ingersoll-Rand India to consolidate its India based subsidiaries and provide it increased operational flexibility to support its business and meet the needs of its customers," a news release said.

Shares of Ingersoll-Rand India rose to Rs 339.05 on the BSe from the previous day's close of Rs 282.55.

Ingersoll-Rand Company intends to acquire the outstanding shares through a shareholder-led reverse book building process. The offer price of Rs 325 a share is higher than the highest closing price of Ingersoll-Rand India for the last five years and represents a compelling exit opportunity for Ingersoll-Rand India shareholders.

Ingersoll-Rand (India) today informed BSE that it has convened an EGM on September 23 to seek shareholders' approval for delisting the company's equity shares from BSE, Ahmedabad SE and NSE .