Gulf investment firm Investcorp makes open offer for 26% stake in Stovec

Gulf investment firm Investcorp has made an open offer to acquire up to 26 per cent equity stake in Ahmedabad-based Stovec Industries Limited from the public shareholders of the company, according to a stock market disclosure. The open offer has been triggered by an indirect acquisition of majority stake in Stovec.

Investcorp has made an open offer to acquire 5,42,885 equity shares at a share price of Rs 560 a unit, which will value the transaction at around Rs 30.4 crore (a little over $5 million), if fully subscribed.

The offer price will be paid in cash and completion of the open offer is subject to receipt of statutory approvals required. The open offer is not conditional upon any minimum level of acceptance as per Regulation 19(1) of the Takeover Regulations, it added.

Pantomath Capital Advisors Ltd is the manager of the open offer.

On June 19, Investcorp arm Print II BV announced a commercial understanding to acquire 100 per cent stake in SPG Prints Group BV, which holds 71 per cent stake in Stovec Industries. Subject to some consultation and customary regulatory approvals, the aforesaid acquisition is expected to close in August 2014.

This resulted in an indirect acquisition of controlling stake in Stovec. The firm is engaged in production and marketing of nickel perforated rotary screens, machinery and components for textile printings, anilox rollers and sugar and rota-mesh screens. The company operates in three segments: textile machinery and consumables, graphics consumables and galvanic.

On Wednesday, shares of Stovec closed at Rs 678.70 per share, up 2.90 per cent on BSE in a flat Mumbai market.

Founded in 1982, Investcorp is a provider and manager of alternative investment products, serving high-net-worth private and institutional clients. Its principal client base is in the six countries of the Gulf Cooperation Council, along with some institutional clients in North America and Europe.

It is listed on the Bahrain Bourse and has offices in New York, London, Bahrain and Abu Dhabi. It has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As of December 31, 2013, Investcorp had $11.3 billion in total assets under management.

A couple of years ago it had sold its 25.97 per cent stake in Cayman Island-based overseas business holding arm Redington International Holding Ltd to Redington (India) Ltd for $113 million.

(Edited by Joby Puthuparampil Johnson)

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