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Wilmar beefs up stake in Shree Renuka Sugars to 39%, triggering open offer
WILMAR International on Friday said its 100-per-cent subsidiary, Wilmar Sugar Holdings, has subscribed to 481.8 million compulsorily convertible preference shares (CCPS) of Shree Renuka Sugars (SRSL) at 16.28 Indian rupees per share.
It has also exercised its option to convert all the CCPS into common equity shares. Further, as part of the implementation of a debt restructuring package entered into by SRSL and its lenders, the lenders have converted a part of SRSL's outstanding bank debts into common equity shares of SRSL.
Following the allotment of common equity shares to Wilmar and SRSL's lenders, Wilmar's shareholding in SRSL's equity share capital has increased from about 27 per cent to 39 per cent.
As per the Securities and Exchange Board of India's regulations, Wilmar has made a public announcement of an open offer on Friday for the acquisition of up to 26 per cent of SRSL's emerging equity share capital, after taking into account the shares to be allotted to itself and the lenders, at a price of 16.29 rupees per share from the public shareholders.
The open offer price is 0.01 rupees per share higher than the subscription price Wilmar paid, as determined under the rules of India's securities and exchange board.