Xchanging yet to make open offer despite Sebi directives

Multinational IT service provider Xchanging Solutions, owned by Hewlett Packard Enterprise, is yet to make an open offer despite Sebi directives to do so by August 5. Sebi in its informal guidance on May 5 asked the promoters of Xchanging Solutions to make an open offer within 90 days. The open offer was triggered due to change in management at its parent company DXC Technologies.

Following the company's parent -USbased Computer Sciences Corporation (CSC) -announcing its merger with Hewlett Packard Enterprise, Xchanging Solutions has sought Sebi guidelines in February whether this merger would trigger an indirect open offer.

Sebi in its letter dated May 5, 2017, categorically stated that the merger will not be exempted from the obligation to make an open offer under the takeover code. An email query sent to DXC Technologies did not elicit any response till the time of going to press.

According Reg 8(3)(E) of takeover code, promoters will now have to make an open offer at Rs 69.18 per shares which is the weighted average price between Feb 22, 2016 and May 23, 2016 on NSE in addition to a minimum 10% interest till date. As on date, this would come around Rs 78.43 per shares. Xchanging stock ended at Rs 60.25 on Wednesday.