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Investcorp Makes Open Offer for 26% Stake In Stovec


Gulf investment firm Investcorp has made an open offer to acquire up to 26 percent equity stake in Ahmedabad-based Stovec Industries Limited from the public shareholders of the company, according to a stock market disclosure. The open offer has been triggered by an indirect acquisition of majority stake in Stovec.

Investcorp has made an open offer to acquire 5,42,885 equity shares at a share price of Rs 560 a unit, which will value the transaction at around Rs 30.4 crore (a little over $5 million), if fully subscribed.

The offer price will be paid in cash and completion of the open offer is subject to receipt of statutory approvals required. The open offer is not conditional upon any minimum level of acceptance as per Regulation 19(1) of the Takeover Regulations, it added.

Pantomath Capital Advisors Ltd is the manager of the open offer. Recently, Investcorp arm Print II BV announced a commercial understanding to acquire 100 per cent stake in SPG Prints Group BV, which holds 71 per cent stake in Stovec Industries. Subject to some consultation and customary regulatory approvals, the aforesaid acquisition is expected to close in August 2014.

This resulted in an indirect acquisition of controlling stake in Stovec. The firm is engaged in production and marketing of nickel perforated rotary screens, machinery and components for textile printings, anilox rollers and sugar and rota-mesh screens. The company operates in three segments: textile machinery and consumables, graphics consumables and galvanic.