Tuesday, June 15th, 2004
FLEXTRONICS International has priced its open offer for 20 per cent of the paid-up equity capital of Hughes Software Systems (HSS) at Rs 548 a share. The offer price to the public shareholders is a rupee higher than what Flextronics paid for a share of face value of Rs 5 for acquiring 54.95 per cent stake of promoters of HSS, Hughes Network Systems (HNS). The open offer will open on July 30 and close on August 30. The last date for revising the offer price and number of shares is August 19.
Flextronics acquired HSS from HNS for Rs 1,021.1 crore. HNS is a fully owned subsidiary of Rupert Murdochm controlled DirectTV. As per guidelines of Securities and Exchange Board of India (SEBI), after the takeover of HSS, Flextronics had to come out with a public offer for acquiring 20 per cent stake amounting to 67,93,810 shares. For the open offer, Flextronics will have to spend Rs 372.3 crore.
The price Flextronics has offered to pay per share for the open offer is higher than the average of weekly high and low of the closing prices of the shares of HSS during the 26 weeks preceding the offer which was Rs 547.93.
It is also higher than the average of daily high and low of the shares of HSS during the two weeks preceding the date of offer, which was Rs 511.16.
Last updated :
June 16, 2004
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