Offer to acquire 3,078,604 shares in ESAB India Limited
26/06/2007
A subsidiary of Charter has today announced an offer for 3,078,604 fully paid up equity shares in ESAB India Limited (“ESAB India”), representing 20.0 per cent of ESAB India’s issued share capital, at a price of Rs. 426 per share.
Assuming full acceptances, the total value of the offer is Rs. 1,311 million (equivalent to £16.2 million). The offer is subject to various regulatory conditions in India and, given the uncertainty associated with public offers in India, the outcome of the offer will remain unclear for several months.
At close of business on 22 June 2007, the share price of ESAB India, which is listed on the National Stock Exchange and the Bombay Stock Exchange, was Rs. 424.65. The regulatory minimum offer price permitted under Indian regulations* on that date was Rs. 425.2.
Charter already holds 5,743,200 shares in ESAB India through a subsidiary, ESAB Holdings Limited, which represents 37.3 per cent of ESAB India’s existing issued share capital. Assuming full acceptances, the offer will enable Charter to increase its overall indirect holding in ESAB India to a maximum of 57.3 per cent.
ESAB India is engaged in the business of welding consumables (including welding electrodes, copper coated wires and welding fluxes) and welding equipment (including welding machines and cutting equipment).
In the financial year ended 31 December 2006, ESAB India achieved sales of Rs. 2,929.9 million (2005: Rs. 2,480.7 million) and profit after tax of Rs. 426.7 million (2005: Rs. 397.1 million). Earnings per share were Rs 27.7 (2005: Rs 25.8).
At mid-market exchange rates at close of business in London on 22 June 2007, Rs 81.0 were equivalent to £1.
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959
Charter plc on the company’s web site www.charterplc.com
Notes to Editors
* The regulatory minimum offer price is calculated as the higher of :
- The average of the weekly high and low of the closing prices of shares of ESAB India on the National Stock Exchange, where it is most frequently traded, during the 26 week period preceding the date of the Public Announcement, and
- The average of the daily high and low of the prices of shares of ESAB India on the National Stock Exchange, where it is most frequently traded, during the 2 week period preceding the date of the Public Announcement