Date:07/03/2006 URL: http://www.thehindubusinessline.com/2006/03/07/stories/2006030701910500.htm

Back BOC India may see significant changes

Kohinoor Mandal

Open offer Once Linde takes over the BOC Plc stake, it would have to make a mandatory 20 per cent open offer.

Kolkata , March 6

BOC India Ltd, the Indian subsidiary of the British gas major, BOC Plc, is all set to witness significant changes following the global takeover of BOC Plc by the German leader, Linde AG.

BOC Plc holds 54.8 per cent in the Indian venture. Once Linde takes over the BOC Plc stake, it would have to make a mandatory 20 per cent open offer.

In India, Linde has a Baroda-based engineering firm by name of Linde Process Technologies India Pvt Ltd.

BOC India officials are tight-lipped on the issue but Mr Nigel Abbott, Director (Public Relations) of the London-based BOC Group, said the board of director of BOC Plc would "intend to recommend" the Linde offer subject to the clearance of the EU and the US authorities.

When queried about the takeover impact on BOC India, he said it is too early to comment. "It is likely to go through as geographically the two companies have strengths in different places. In India, BOC has a substantial stake and Linde would gain from it", Mr Abbott told Business Line.

Mr Uwe Wolfinger, Head of External Communication of Linde Ag, said both the companies complement each other. "In India, while BOC is strong in gases, we are strong in the engineering sector," Mr Wolfinger told Business Line.

Though he said that he is unaware of the mandatory open offer that Linde would have to make in India, still he said the whole takeover process, worldwide, would be over by September.

A senior official of Linde's corporate communications department said that they are "aware of the problem (open offer) in India" and it is similar to that of South Africa. The matter has already been referred to the legal cell of Linde.

This acquisition would help Linde most in India and China, which are the two most promising markets. In both these countries, Linde's presence is currently negligible but would have gain immensely from the existing business activities of BOC.

For the year ended March 31, 2005, BOC India registered a turnover of Rs 424.35 crore against Rs 347.17 crore in the previous fiscal. Net profit was Rs 27.17 crore. The company had a liquidity reserve of Rs 189 crore.