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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9472)	11/8/1999 8:56:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Premier Mills' promoters plan to delist shares,offer at Rs 60/share premiermills.com Our Chennai Bureau (FE) 8 NOVEMBER THE promoters of the Coimbatore-based Premier Mills Ltd (PML), one of the oldest and profit-making composite mills in the south, intend to go for delisting of the company's shares. The promoters themselves have come out with an open offer through their recently-floated investment arm to mop up additional stake at a higher price. As per the public announcement made on Thursday, the promoter group currently holds 72.64 per cent stake in the PML's equity capital of Rs 4.84 crore. This included 132,240 shares (2.76 per cent) acquired by the holding company -- Primiera Investments Pvt Ltd -- at a price of Rs 52.5 during the period commencing from the date of its incorporation (April 12, '99) till the date of the announcement. It is said the firm had picked up bulk of the shares unloaded by LIC and other financial institutions.Now, the investment company intends to acquire 9.60 lakh share representing 20 per cent of the equity at a price of Rs 60 per share. It is claimed the offer price is 75.49 per cent higher than the 26 weeks' average of weekly high and low in Madras Stock Exchange (MSE). Since the promoters group holds 72.64 per cent including that of the investment arm, they intend to enhance their holding through the offer. It is slated open on December 22 and close on January 20, 2000. It is also announced if as a result of public offer the public holding in PML drops to 10 per cent or below, then the acquirer will within three months make an offer to buy-out the outstanding shares. This will lead to delisting of PML scrips, which are now listed in MSE. PML reported a turnover of Rs 248.91 crore with a profit after tax of Rs 8.7 crore during '98-99. However, with effect from April 1, '99 the export-oriented spinning unit at Pulankinar which had a turnover of Rs 91.28 crore was transferred to the fully-owned subsidiary Premier Fine Yarns Ltd. Meanwhile MSE has imposed a volatility margin 20 per cent on PML on the new purchase position with effect from Thursday