Japanese electronics firm Panasonic has acquired 16.42 per cent stake held by public shareholders in its public-listed Indian arm Panasonic Appliances India Company Ltd for Rs 61.35 crore ($9.9 million) through reverse book building process, according to a stock market disclosure.
With its shareholding has now increased to 90.64 per cent which allows it to now apply for delisting the arm from Indian stock exchanges.
As per the regulations, Panasonic will provide an exit period of one year to the remaining shareholders to tender their shares at the discovered price of Rs 380 each. At this price, the group would need to shell out an additional Rs 34.97 crore to complete the buyout, provided all the shares are tendered during exit period by public shareholders.
In October last year, the group had acquired 16.95 per cent stake of its Indian partner P Obul Reddy Group in the Indian appliances making arm. Post which it held 74.22 per cent stake.
Founded in 1988, Panasonic Appliances India, formerly Panasonic Home Appliances India Co Ltd, is engaged in the manufacturing and marketing of kitchen and small domestic appliances. Its products catalogue includes cookers, mixes, microwave ovens, water purifiers, etc. It also offers beauty care and healthcare products.
Shares of Panasonic Appliances were trading at Rs 367.20 each, up 1.13 per cent on BSE in a weak Mumbai market on Thursday at 12.59 PM.
BMR acted as the advisor to Panasonic both for the buyout of co-promoter and delisting while ICICI Securities acted as the merchant banker for the delisting transaction.
(Edited by Joby Puthuparampil Johnson)