Alfa Laval sweetens offer for its India unit

MUMBAI: Swedish engineering group Alfa Laval AB on Thursday said it has revised the open offer for purchasing shares of its Indian unit to Rs 1,300 per share, a premium of 48.5 per cent over the original price.

"The offer is for acquisition of upto 4,702,500 fully paid-up equity shares of face value of Rs 10 each of Alfa Laval India representing 25.89 per cent of the voting capital of the firm at a revised offer price of Rs 1,300 per share," Alfa Laval India informed the Bombay Stock Exchange (BSE).

The planned purchase at Rs 1,300 would lift the Swedish parent's stake in the Mumbai-listed company to 89.89 per cent from the existing 64 per cent. The company initially bid at Rs 875 per share in February.

If fully subscribed, the foreign parent Alfa Laval AB and Alfa Laval Corporate AB would spend over Rs 611 crore for the open offer as per the revised terms. The open offer has already commenced from May 7 and is slated to close for subscription on May 26, as per an earlier announcement on April 27.

HSBC Securities and Capital Markets (India) is the manager to the offer. Shares of Alfa Laval India closed at Rs 1220.15, down 1.03 per cent on the BSE.