Atlas Copco AB last week said it will acquire at least 50 percent of all shares it does not already own in its subsidiary Atlas Copco (India) Limited, and will apply for the delisting of its shares from Indian exchanges.
Atlas Copco AB invited public shareholders of Atlas Copco (India) to submit offers for the sale of their shares. Atlas Copco AB will initially acquire about 1.8 million shares at 2,750 Rupees per share (about U.S. $59.74), for a total approximately INR 5 billion (U.S. $108.6 million). This will bring Atlas Copco AB’s shareholding in Atlas Copco (India) Limited to 92 percent, from 84 percent previously.
“This investment is in line with the Group’s policy of having wholly owned foreign subsidiaries, and offers us greater operational flexibility in India,” said Hans Ola Meyer, chief financial officer of Atlas Copco AB.
Atlas Copco will submit an application for delisting to the Bombay Stock Exchange and the Pune Stock Exchange. Upon approval, all remaining public shareholders in Atlas Copco (India) will have an option to divest their shares to Atlas Copco AB at 2 750 Rupees per share for the coming 12 months. Atlas Copco anticipates that part of the outstanding shares will be tendered during this period.
Financial market regulations in India require publicly listed companies to have a public shareholding of at least 25 percent by June 2013, or apply for delisting. A delisting requires the purchase of at least 50 percent of outstanding shares, and at least 90 percent ownership.
Atlas Copco, Stockholm, Sweden, is an industrial group with global positions in compressors, construction and mining equipment, power tools and assembly systems.