Texmaco Rail to launch open offer to buy 30% in Kalindee Rail

KOLKATA: The takeover battle for Kalindee Rail Nirman (Engineers) took a dramatic turn when Texmaco Rail & Engineering ( Texrail) launched an open offer to buy 30% in the Gurgaon-based railway infrastructure company on Saturday after buying out the entire promoters’ stake of 11.74% in the firm for Rs 12.59 crore.

In a filing to Bombay Stock Exchange ( BSE), Texrail’s merchant banker ICICI Securities said the company has decided to buy 49.52 lakh shares of Kalindee Rail via open offer at Rs 68 a share. The open offer is also in response to Jaipur-based engineering & construction company Jupiter Metal Pvt. Ltd’s hostile takeover attempt to acquire a 30% stake in Kalindee Rail by launching a conditional and voluntary open offer.

Texrail, which will own 36.64% stake in Kalindee Rail, is looking to ac-quire more through the open offer. The 36.64 % stake includes the Kalindee promoters’ stake of 15.64 % and additional, 24.9 % stake would come via the preferential route.

Incidentally, Kalindee Rail board, on July 13, 2013, had decided to issue 24.90% of equity through preferential allotment of shares to Texmaco Rail at Rs 63.13 a share, subject to shareholders’ approval. Post the preferential allotment, Kalindee Rail promoters’ holding will stand diluted to 11.74 %.

Jupiter Metal will now have to come out with an enhanced open offer on the expanded equity base of Kalindee Rail post preferential allotment.