Stake in Hindalco to hike
Promoters of Hindalco Industries, the flagship company of the Aditya Birla Group, plan to increase their stake in the company to at least 40% to ward off threats of a possible hostile takeover.
By TNN |
MUMBAI: Promoters of Hindalco Industries, the flagship company of the Aditya Birla Group, plan to increase their stake in the company to at least 40% to ward off threats of a possible hostile takeover. At present, the promoters own 31.4% of the country’s biggest aluminium producer.
“I would like our stake to be more than 50% and, if not, at least 40% in the next two years,” an international newswire quoted group chairman Kumar Mangalam Birla.
The development comes after rumours abounded in the market that the Birla family was looking to increase its stake in the company amidst takeover fears. The company’s shares have risen by almost 5% in a week, and almost 10% in a month. The stock rose 1.7% to Rs 186.50 on the BSE on Tuesday.
As on March 2007, the promoters held 27.06% stake in Hindalco. This had increased to over 31% by June. As per Sebi norms, promoters can increase their holdings by a maximum of 5% in a year. Meanwhile, Hindalco Industries has decided to merge Indal’s Kollur foils plant with itself. The scheme is likely to be implemented during the current fiscal.
“Indal’s Kollur foils plant has been a loss-making unit for the past few years. However, as it was always protected under the umbrella of the erstwhile Indal, its standalone performance was never highlighted,” said Indal chairman AK Agarwala at the company’s 69th AGM on Tuesday.
The global metals industry has seen takeovers worth $123 billion this year.
This includes Hindalco’s $5.9-billion buy of Canada’s Novelis, making the Indian major one of the top five integrated companies in the aluminium industry.
Tata Steel had earlier acquired the Anglo-Dutch steelmaker Corus for $13.2 billion. The promoter holding in Tata Steel has also gone up from 26.79% in March 2006, to 33.77% this year. The global metals industry had clocked $144 billion in mergers and takeovers last year.
“I would like our stake to be more than 50% and, if not, at least 40% in the next two years,” an international newswire quoted group chairman Kumar Mangalam Birla.
The development comes after rumours abounded in the market that the Birla family was looking to increase its stake in the company amidst takeover fears. The company’s shares have risen by almost 5% in a week, and almost 10% in a month. The stock rose 1.7% to Rs 186.50 on the BSE on Tuesday.
As on March 2007, the promoters held 27.06% stake in Hindalco. This had increased to over 31% by June. As per Sebi norms, promoters can increase their holdings by a maximum of 5% in a year. Meanwhile, Hindalco Industries has decided to merge Indal’s Kollur foils plant with itself. The scheme is likely to be implemented during the current fiscal.
“Indal’s Kollur foils plant has been a loss-making unit for the past few years. However, as it was always protected under the umbrella of the erstwhile Indal, its standalone performance was never highlighted,” said Indal chairman AK Agarwala at the company’s 69th AGM on Tuesday.
The global metals industry has seen takeovers worth $123 billion this year.
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This includes Hindalco’s $5.9-billion buy of Canada’s Novelis, making the Indian major one of the top five integrated companies in the aluminium industry.
Tata Steel had earlier acquired the Anglo-Dutch steelmaker Corus for $13.2 billion. The promoter holding in Tata Steel has also gone up from 26.79% in March 2006, to 33.77% this year. The global metals industry had clocked $144 billion in mergers and takeovers last year.
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