Binani may succeed in bourse exit

Binani may succeed in bourse exit
21 February 2011

Binani Cement, a part of the Braj Binani group, may succeed in delisting its shares from Indian bourses with public shareholders tendering nearly 80 per cent of their shares in response to a recent buyout offer, according to persons familiar with the matter.

Binani Industries, which owns 69.9 per cent stake in the cement maker, wanted to buy back the remaining shares from the public shareholders and de-list the company’s shares from the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

If the promoters accept all the shares tendered in the delisting offer at the discovered price, their shareholding in the company would surpass 90 per cent. This will legally allow them to delist the shares, according to Securities and Exchange Board of India (Sebi) regulations.

A delisting offer is deemed successful if post-offer, the shareholding of the promoter taken together with the shares accepted through eligible bids at the final price determined reaches the higher of 90 per cent or the aggregate percentage of pre-offer promoter shareholding and 50 per cent of the offer size.
Binani Cement’s delisting offer opened on February 7 and closed on February 11. The company will announce the exit price discovered through the reverse book-building route and the promoters’ acceptance of that price tomorrow.
Published under Cement News