Within hours of the statement about its Rs 640 crore asset purchase deal, Ahmedabad-based Kiri Dyes has denied that it is looking to acquire the single super phosphate (SSP) plant of Bodal Chemicals for a cash consideration of Rs 640 crore.
Earlier in the day, a statement filed with the BSE said that the deal would be done through a slump sale, but both companies denied it in separate filings to the exchanges.
The share price of Bodal Chemicals was up 10.95 per cent on the news of the sale, but later dipped nearly 11 per cent to close at Rs 18.35 per share. The share price of Kiri Dyes closed at Rs 153.65, up 3.47 per cent, on Monday.
The incident is somewhat reminiscent of the Pyramid Saimira scam, where a fake letter from SEBI was sent to make an open offer.
Bodal Chemicals came out with a statement in the afternoon that it had not issued any Press release regarding divestment of its plant.
“There are no developments in the company for divestment of SSP plant, issue of bonus shares, etc. The developments like divestment of SSP plant, issue of bonus shares, CRISIL ratings, etc., which were issued through the Press release, are not consented by the company, un-authenticated and without any existence,” Bodal stated, adding that there was no board meeting on 27 or 29 August.
“We are not a party to any of the bidding processes, if any, undertaken by Bodal Chemicals for sale of its super phosphate plant,” said Manish Kiri, MD of Kiri Industries, in a filing to the exchanges.
According to the statement sent in the morning, the SSP plant was set up at Padra (Vadodara) in 2008, at a cost of Rs 31 crore, for manufacturing sulphuric acid, dyes and dyes intermediaries. The production capacity of the unit stands at 14 lakh MTPA.
Kiri Dyes has been a fairly acquisitive player, as it bought the North American (2010) and German unit (2009) of DyStar for $10 million and $68.5 million, respectively.