Sona Koyo Steering slumps over 5% after open offer

NEW DELHI: Shares of Sona Koyo Steering System tumbled over 5 per cent in trade on Thursday after existing promoter JTEKT Corporation said it would acquire up to 51,672,877 shares, or 26 per cent stake in the company, via an open offer aggregating Rs 434.05 crore at Rs 86 per share.

Following the announcement, the stock fell 5.26 per cent to hit a low of Rs 80 on BSE.

The open offer was triggered after JTEKT Corporation entered a share purchase agreement with promoter entity Sona Autocomp Holding and Rani Kapur and Sunjay Kapur for 25.12 per cent stake in the company in a cash deal. The total consideration would aggregate to Rs 419.28 crore.

The deal values the company at an enterprise value of Rs 1,922.50 crore. The offer price represents a premium of 34 per cent to the average closing price of the stock for last three months.

If the open offer is fully subscribed JTEKT Corporation stake in the company would jump to 71.22 epr cent in the company from 20.10 per cent at present.