India New Bridge Investment and Maxwell (Mauritius), the investment arms of Newbridge Capital LLC and Temasek Holdings, respectively, will together come out with a voluntary open offer to the shareholders of Matrix Laboratories.
This follows their decision to jointly subscribe to the proposed preferential issue of 2.25 million equity shares by Matrix.
In a communication to the Bombay Stock Exchange, Matrix said after the preferential offer, India New Bridge Investment and Maxwell's combined shareholding would touch 15.4 per cent of the diluted equity of Matrix.
The Securities and Exchange Board of India stipulates that investors have to come out with an open offer for a minimum additional 20 per cent equity of a company if their shareholding crosses 15 per cent.
As per the Sebi formula, the open offer price is likely to be around Rs 1,530 per share.
Matrix's equity currently stands at Rs 12.3 crore (Rs 123 million), and after the preferential issue it will increase to Rs 14.55 crore (Rs 145.5 million). The company's board yesterday approved the issue of 2.25 million equity shares at Rs 1,500 per share, totalling Rs 337.5 crore (Rs 3.37 billion).
Matrix has informed the stock exchanges that it will convene an extraordinary general meeting of its shareholders on March 26, 2004, to obtain their approval for the proposed preferential issue.
The EGM will ensure that the new resolution will supersede the approval obtained earlier for the same issue.
At an EGM held on January 28, 2004, the shareholders of Matrix had passed a resolution for the allotment of 2.25 million shares to New Bridge Investment and Maxwell (Mauritius) individually.
The company had in its notice to the stock exchanges said the proposed allottees were not acting in concert and the acquisition of shares was being made independently.
However, the foreign institutional investors later informed the company that they had decided to co-operate in acquiring the shares through the preferential allotment.They said if they decided to acquire the shares such that their combined shareholding in the company equalled to or exceeded 15 per cent of its paid-up equity pursuant to the preferential allotment or otherwise, they would together make an open offer in accordance with the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.