Styrolution, a global joint venture between chemical giants INEOS and BASF, has acquired 4 per cent additional stake in the open offer for Ineos ABS India Ltd for Rs 42 crore (over $8 million). The parent company now owns 87 per cent in INEOS ABS and will either have to eventually dilute its holding to meet minimum public listing norms of 25 per cent or come up with a delisting offer.

According to current listing norms, promoters either need to dilute their holdings to less than 75 per cent in public-listed companies or raise their holdings to above 90 per cent to delist from the stock exchange.

Styrolution was formed nearly a year ago when INEOS Industries Holdings Ltd and BASF SE announced their intention to combine their global business activities in styrene monomers, polystyrene, acrylonitrile butadiene styrene, styrene-butadiene block copolymers and other styrene-based copolymers, as well as copolymer blends, into a new joint venture.

The company serves a wide range of industries including automotive, electrical and electronics, 3C, packaging, toys, sports & leisure, household, building & construction, and healthcare & diagnostics.  It has production facilities and sales offices in Germany, Italy, the USA, Mexico, Brazil, China, Hong Kong, Singapore, Vietnam, Korea and India.

INEOS held 83 per cent stake in its public-listed Indian arm and had to come with the mandatory open offer for minority shareholders as part of the global change in the parent company. Styrolution made the offer to buy 16.67 per cent in INEOS ABS India which it did not own, but managed to acquire only 4 per cent or 703,075 shares at the offer price of Rs 606.81 a piece.

The open offer opened on January 16, 2012, and closed on February 6. Kotak Mahindra Capital Company Ltd was the manager of the open offer.

On the Bombay stock Exchange, shares of INEOS ABS India last traded at Rs 609.65 on Friday, down 0.42 per cent from the previous close. Stock market was closed for trading on Monday.

Incorporated in 1973, INEOS ABS (India) Ltd (formerly LANXESS ABS Ltd) is engaged in the manufacturing and sale of acrylonitrile butadiene styrene and styrene acrylonitrile copolymer products. It is also involved in trading polycarbonates.

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