LETTER OF OFFER MANAGER TO THE OFFER REGISTRAR TO THE OFFER CORPORATE PROFESSIONALS CAPITAL PRIVATE LIMITED CIN: U74899DL2000PTC104508 D-28, South Extn., Part-I, New Delhi – 110049 Contact Person: Mr. Manoj Kumar/ Ms. Ruchika Sharma Ph. No.: +91-11-40622228/+91-11-40622248 Fax. No.: 91-11-40622201 Email ID: [email protected]/ [email protected]SEBI Regn. No: INM000011435 BEETAL Financial and Computer Services Private Limited CIN: U67120DL1993PTC052486 BEETAL House, 3 rd Floor, 99, Madangir Behind Local Shopping Centre, New Delhi – 110062 Contact Person: Mr. Punit Mittal Ph. No.: +91-11-29961281/82/83 Fax. No.: +91-11-29961284 Email: [email protected]SEBI Regn. No.: INR 000000262 OFFER OPENS ON: SEPTEMBER 07, 2017, THURSDAY OFFER CLOSES ON: SEPTEMBER 20, 2017, WEDNESDAY THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION This Letter of Offer (LoF) is sent to you as an Equity Shareholder(s) of Golkonda Aluminium Extrusions Limited. If you require any clarifications about the action to be taken, you may consult your stock broker or investment consultant or Manager / Registrar to the offer. In case you have recently sold your shares in the Company, please hand over this LoF and the accompanying Form of Acceptance cum acknowledgement and Transfer Deed to the Member of Stock Exchange through whom the said sale was effected.” ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, OPEN OFFER BY MRS. UTPAL AGRAWAL (‘Acquirer 1’) & MR. HARI PRAKASH AGRAWAL (‘Acquirer 2’) Residing at 4/8, Asaf Ali Road, 2 nd Floor, Above Bank of India, Darya Ganj, Delhi – 110002; Tel. No.: +91-11-23262982, +91-11-23279434; (Hereinafter collectively referred to as “Acquirers”) to Acquire upto 4,113,490 (Forty One Lacs Thirteen Thousand Four Hundred and Ninety) Equity Shares of face value of Rs.10/- each representing 26.00% of the total voting share capital of GOLKONDA ALUMINIUM EXTRUSIONS LIMITED Registered Office: House No. 4-56/1, Kallakal Village, Toopran Mandal, Medak District, Telangana – 502336; Tel. No.: +91-9985121834; Fax. No.: +91-040-23553214; Website: www.alumecoindia.com; Email ID: [email protected]; At a price of Re. 0.50/- (Fifty Paisa Only) per fully paid up equity share payable in cash, pursuant to Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘SEBI (SAST) Regulations, 2011’) and subsequent amendments thereof. 1. This offer is being made by Acquirers pursuant to Regulation 3(1) and Regulation 4 of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and subsequent amendments thereto for substantial acquisition of shares and control. 2. The Offer is not subject to any minimum level of acceptance. 3. The details of statutory approvals required is given in para 7.4 of this Letter of Offer. 4. THIS OFFER IS NOT A COMPETING OFFER. 5. If there is any upward revision in the Offer Price by the Acquirers upto three working days prior to the commencement of the tendering period i.e. upto September 01, 2017, Friday or in the case of withdrawal of offer, the same would be informed by way of the Offer Opening Public Announcement in the same newspapers where the original Detailed Public Statement has appeared. Such revision in the Offer Price would be payable by the Acquirers for all the shares validly tendered anytime during the offer. 6. THERE IS NO COMPETING OFFER TO THIS OFFER. 7. A copy of Public Announcement, Detailed Public Statement, and Letter of Offer (including Form of Acceptance cum Acknowledgement) is also available on SEBI’s web-site: www.sebi.gov.in. FOR PROCEDURE FOR ACCEPTANCE OF THIS OPEN OFFER PLEASE REFER SECTION 8 “PROCEDURE FOR ACCEPTANCE AND SETTLEMENT OF THE OFFER” (PAGE NO. 23 to 29). FORM OF ACCEPTANCE-CUM-ACKNOWLEDGEMENT IS ENCLOSED WITH THIS LETTER OF OFFER. All future correspondence, if any, should be addressed to the Manager / Registrar to the Offer at the following addresses:
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MRS. UTPAL AGRAWAL (‘Acquirer 1’) & MR. HARI ......MRS. UTPAL AGRAWAL (‘Acquirer 1’) & MR. HARI PRAKASH AGRAWAL (‘Acquirer 2’) Residing at 4/8, Asaf Ali Road, 2nd Floor,
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LETTER OF OFFER
MANAGER TO THE OFFER REGISTRAR TO THE OFFER
CORPORATE PROFESSIONALS CAPITAL PRIVATE
LIMITED
CIN: U74899DL2000PTC104508
D-28, South Extn., Part-I, New Delhi – 110049
Contact Person: Mr. Manoj Kumar/ Ms. Ruchika Sharma
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
This Letter of Offer (LoF) is sent to you as an Equity Shareholder(s) of Golkonda Aluminium Extrusions Limited. If you require any clarifications about the action to be taken, you may consult your stock broker or investment consultant or Manager / Registrar to the offer. In case you have recently sold your shares in the Company, please hand over this LoF and the accompanying Form of Acceptance cum acknowledgement and Transfer Deed to the Member of Stock Exchange through whom the said sale was effected.” ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
OPEN OFFER BY
MRS. UTPAL AGRAWAL (‘Acquirer 1’) & MR. HARI PRAKASH AGRAWAL (‘Acquirer 2’) Residing at 4/8, Asaf Ali Road, 2nd Floor, Above Bank of India, Darya Ganj, Delhi – 110002;
Tel. No.: +91-11-23262982, +91-11-23279434;
(Hereinafter collectively referred to as “Acquirers”)
to Acquire upto 4,113,490 (Forty One Lacs Thirteen Thousand Four Hundred and Ninety) Equity Shares of face value of Rs.10/-
each representing 26.00% of the total voting share capital of
GOLKONDA ALUMINIUM EXTRUSIONS LIMITED Registered Office: House No. 4-56/1, Kallakal Village, Toopran Mandal, Medak District, Telangana – 502336;
Tel. No.: +91-9985121834; Fax. No.: +91-040-23553214; Website: www.alumecoindia.com; Email ID: [email protected]; At a price of Re. 0.50/- (Fifty Paisa Only) per fully paid up equity share payable in cash, pursuant to Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘SEBI (SAST) Regulations, 2011’) and
subsequent amendments thereof.
1. This offer is being made by Acquirers pursuant to Regulation 3(1) and Regulation 4 of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and subsequent amendments thereto for substantial acquisition of shares and control.
2. The Offer is not subject to any minimum level of acceptance. 3. The details of statutory approvals required is given in para 7.4 of this Letter of Offer. 4. THIS OFFER IS NOT A COMPETING OFFER. 5. If there is any upward revision in the Offer Price by the Acquirers upto three working days prior to the commencement of the tendering
period i.e. upto September 01, 2017, Friday or in the case of withdrawal of offer, the same would be informed by way of the Offer Opening Public Announcement in the same newspapers where the original Detailed Public Statement has appeared. Such revision in the Offer Price would be payable by the Acquirers for all the shares validly tendered anytime during the offer.
6. THERE IS NO COMPETING OFFER TO THIS OFFER. 7. A copy of Public Announcement, Detailed Public Statement, and Letter of Offer (including Form of Acceptance cum
Acknowledgement) is also available on SEBI’s web-site: www.sebi.gov.in.
FOR PROCEDURE FOR ACCEPTANCE OF THIS OPEN OFFER PLEASE REFER SECTION 8 “PROCEDURE FOR ACCEPTANCE AND SETTLEMENT OF THE OFFER” (PAGE NO. 23 to 29). FORM OF ACCEPTANCE-CUM-ACKNOWLEDGEMENT IS ENCLOSED WITH THIS LETTER OF OFFER.
All future correspondence, if any, should be addressed to the Manager / Registrar to the Offer at the following addresses:
Public Announcement (PA) Date July 11, 2017, Tuesday July 11, 2017, Tuesday
Detailed Public Statement (DPS) Date July 18, 2017, Tuesday July 18, 2017, Tuesday
Last date for a competing offer August 08, 2017,
Tuesday
August 08, 2017,
Tuesday
Identified Date* August 21, 2017,
Monday
August 23, 2017,
Wednesday
Date by which LoF will be despatched to the
shareholders
August 29, 2017,
Tuesday
September 04, 2017,
Monday
Issue Opening PA Date September 04, 2017,
Monday
September 06, 2017,
Wednesday
Last date by which Board of TC shall give
its recommendations
August 31, 2017,
Thursday
September 04, 2017,
Monday
Date of commencement of tendering period
(Offer opening Date)
September 05, 2017,
Tuesday
September 07, 2017,
Thursday
Date of expiry of tendering period (Offer
closing Date)
September 18, 2017,
Monday
September 20, 2017,
Wednesday
Date by which all requirements including
payment of consideration would be
completed
October 03, 2017,
Tuesday
October 05, 2017,
Thursday
(*)Identified Date is only for the purpose of determining the names of the shareholders of the Target Company to whom the Letter of Offer would be sent. All owners (registered or unregistered) of equity shares of the Target Company (except the Acquirers) are eligible to participate in the Offer any time before the closure of the Offer.
RISK FACTORS
Given below are the risks related to the transaction, proposed Offer and those associated with
Acquirers:
(A) Relating to Transaction
In terms of Regulation 23 (1) of SEBI (SAST) Regulations, 2011, there may be an event which
warrants withdrawal of the Offer. Acquirers make no assurance with respect to the market price of
the Equity Shares of the Target Company both during the Offer Period and upon the completion of
the Offer and expressly disclaim any responsibility with respect to any decision by any Shareholder
on whether to participate or not to participate in the Offer. However, in the Share Purchase
Agreement dated July 11, 2017 there is no situation prescribed in which the Offer can be withdrawn.
Similarly the Offer or the acquisition under the Share Purchase Agreement is not subject to any
regulatory approval.
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(B) Relating to the Offer
1) In the event that either (a) the regulatory approvals are not received in a timely manner; (b) there
is any litigation to stay the offer; or (c) SEBI instructs Acquirers not to proceed with the Offer, then
the Offer proceeds may be delayed beyond the schedule of activities indicated in this Letter of
Offer. Consequently, the payment of consideration to the public shareholders of GAEL, whose
shares have been accepted in the offer as well as the return of shares not accepted by Acquirers,
may be delayed. In case of delay in receipt of any statutory approval, SEBI has the power to grant
extension of time to Acquirers for payment of consideration to the public shareholders of the Target
Company who have accepted the Offer within such period, subject to Acquirers agreeing to pay
interest for the delayed period if directed by SEBI in terms of Regulation 18(11) of the SEBI (SAST)
Regulations, 2011.
2) In the event of over-subscription to the Offer, the acceptance will be on a proportionate basis.
3) The tendered physical shares and the documents would be held in trust by the Registrar to the
Offer until the completion of Offer formalities. Accordingly, Acquirers make no assurance with
respect to any decision by the shareholders on whether or not to participate in the offer.
4) Acquirers and the Manager to the Offer accept no responsibility for statements made otherwise
than in the Letter of Offer (LOF)/ Detailed Public Statement (DPS)/ Public Announcement (PA) and
anyone placing reliance on any other sources of information (not released by Acquirers) would be
doing so at his / her / its own risk.
5) Shareholders should note that those who have tendered shares in acceptance of the Open Offer
shall not be entitled to withdraw such acceptance.
(C) Relating to Acquirers
1) Acquirers make no assurance with respect to the financial performance of the Target Company
and expressly disclaim any responsibility with respect to any decision by the Shareholders on
whether or not to participate in the Offer.
2) Acquirers make no assurance with respect to their investment/ divestment decisions relating to
their proposed shareholding in the Target Company.
The risk factors set forth above, pertain to the Offer and are not in relation to the present or
future business or operations of the Target Company or any other related matters and are
neither exhaustive nor intended to constitute a complete analysis of the risks involved in
participation or otherwise by a shareholder in the Offer. Shareholders of GAEL are advised to
consult their stock brokers or investment consultants, if any, for analysing all the risks with
respect to their participation in the Offer.
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INDEX
Sr.
No.
Subject Page No.
1. Definitions 05
2. Disclaimer Clause 06
3. Details of the Offer 07
4. Background of Acquirers 10
5. Background of the Target Company 12
6. Offer Price and Financial Arrangements 18
7. Terms and Conditions of the Offer 21
8. Procedure for Acceptance and Settlement of the Offer 23
9. Documents for Inspection 29
10. Declaration by Acquirers 30
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1. DEFINITIONS
S. No. Abbreviations Particulars
1. Acquirers or The Acquirers Mrs. Utpal Agrawal (“Acquirer 1”) and Mr. Hari Prakash
Agrawal (“Acquirer 2”) (hereinafter collectively referred to as
“Acquirers”)
2. Board of Directors / Board The Board of Directors of Golkonda Aluminium Extrusions
Limited
3. Book Value per equity share Net worth / Number of equity shares issued
4. BSE BSE Limited
5. Buying Broker Omkam Capital Markets Private Limited
6. Companies Act The Companies Act, 2013, as amended from time to time
7. Detailed Public Statement or
DPS
Detailed Public Statement which appeared in the
newspapers on July 18, 2017, Tuesday
8. EPS Profit after Tax / Number of Equity Shares issued
9. Escrow Agreement Escrow Agreement dated July 13, 2017 between Acquirers,
Escrow Agent and Manager to the Offer
10. Escrow Bank/ Escrow Agent Kotak Mahindra Bank Limited
11. FEMA The Foreign Exchange Management Act, 1999, as
amended or modified from time to time
12. Form of Acceptance Form of Acceptance cum Acknowledgement
13. LOO or Letter of Offer or
LOF
This Letter of Offer
14. Manager to the Offer or,
Merchant Banker
Corporate Professionals Capital Private Limited
15. N.A. Not Available/ Not Applicable
16. NRI Non Resident Indian
17. Offer or The Offer or Open
Offer
Open Offer for acquisition of upto 4,113,490 Equity Shares
of face value of Rs. 10/- each being 26.00% of the total
voting share capital of Target Company at a price of Re.
0.50/- per Equity share payable in cash
18. Offer Period July 11, 2017, Tuesday to October 05, 2017, Thursday
19. Offer Price Re. 0.50/- (Fifty Paisa Only) per fully paid up Equity Share
payable in cash
20. PAT Profit After Tax
21. Persons eligible to
participate in the Offer
Registered shareholders of Golkonda Aluminium
Extrusions Limited and unregistered shareholders who own
the Equity Shares of Golkonda Aluminium Extrusions
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Limited any time prior to the closure of Offer, including the
beneficial owners of the shares held in dematerialised form,
except the parties to Share Purchase Agreement dated July
11, 2017, including persons deemed to be acting in concert
with such parties, for the sale of shares of the Target
Company.
22. Public Announcement or PA Public Announcement submitted to BSE as well as to SEBI
on July 11, 2017
23. Registrar or Registrar to the
Offer
Beetal Financial and Computer Services Private Limited, an
entity registered with SEBI under the SEBI (Registrar to
Issue and Share Transfer Agents) Regulations, 1993, as
amended or modified from time to time
24. RBI The Reserve Bank of India
25. Return on Net Worth (Profit After Tax/ Net Worth) *100
26. INR or Rs. Indian Rupees
27. SEBI Act Securities and Exchange Board of India Act, 1992
28. SEBI Securities and Exchange Board of India
29. SEBI (SAST) Regulations,
2011
Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011
and subsequent amendments thereto
30. SEBI (SAST) Regulations,
1997
Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997
and subsequent amendments thereto
31. Seller OSI India Holding A/S, Denmark
32. Share Purchase Agreement
or SPA
Share Purchase Agreement dated July 11, 2017 entered
into amongst Acquirers and Seller
33. Tendering Period September 07, 2017, Thursday to September 20, 2017,
Wednesday
34. Target Company or GAEL Golkonda Aluminium Extrusions Limited
2. DISCLAIMER CLAUSE
“IT IS TO BE DISTINCTLY UNDERSTOOD THAT FILING OF LOF WITH SEBI SHOULD NOT IN
ANY WAY BE DEEMED OR CONSTRUED THAT THE SAME HAS BEEN CLEARED, VETTED OR
APPROVED BY SEBI. THE LOF HAS BEEN SUBMITTED TO SEBI FOR A LIMITED PURPOSE
OF OVERSEEING WHETHER THE DISCLOSURES CONTAINED THEREIN ARE GENERALLY
ADEQUATE AND ARE IN CONFORMITY WITH THE REGULATIONS. THIS REQUIREMENT IS
TO FACILITATE THE SHAREHOLDERS OF GOLKONDA ALUMINIUM EXTRUSIONS LIMITED
TO TAKE AN INFORMED DECISION WITH REGARD TO THE OFFER. SEBI DOES NOT TAKE
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ANY RESPONSIBILITY EITHER FOR FINANCIAL SOUNDNESS OF ACQUIRERS OR THE
TARGET COMPANY WHOSE SHARES/ CONTROL IS PROPOSED TO BE ACQUIRED OR FOR
THE CORRECTNESS OF THE STATEMENTS MADE OR OPINIONS EXPRESSED IN THE
LETTER OF OFFER. IT SHOULD ALSO BE CLEARLY UNDERSTOOD THAT WHILE
ACQUIRERS ARE PRIMARILY RESPONSIBLE FOR THE CORRECTNESS, ADEQUACY AND
DISCLOSURE OF ALL RELEVANT INFORMATION IN THIS LETTER OF OFFER, THE
MERCHANT BANKER IS EXPECTED TO EXERCISE DUE DILIGENCE TO ENSURE THAT
ACQUIRERS DULY DISCHARGES ITS RESPONSIBILITY ADEQUATELY. IN THIS BEHALF,
AND TOWARDS THIS PURPOSE, THE MERCHANT BANKER “CORPORATE PROFESSIONALS
CAPITAL PRIVATE LIMITED” HAS SUBMITTED A DUE DILIGENCE CERTIFICATE DATED
JULY 22, 2017 TO SEBI IN ACCORDANCE WITH THE SEBI (SUBSTANTIAL ACQUISITION OF
SHARES AND TAKEOVERS) REGULATIONS, 2011 AND SUBSEQUENT AMENDEMENT(S)
THEREOF. THE FILING OF THE LOF DOES NOT, HOWEVER, ABSOLVE ACQUIRERS FROM
THE REQUIREMENT OF OBTAINING SUCH A STATUTORY CLEARANCES AS MAYBE
REQUIRED FOR THE PURPOSE OF THE OFFER.”
3. DETAILS OF THE OFFER
3.1. Background of the Offer
3.1.1. The Offer is being made under Regulation 3(1) and Regulation 4 of SEBI (SAST) Regulations,
2011 for substantial acquisition of shares and control over the Target Company.
3.1.2. On July 11, 2017, Mrs. Utpal Agrawal (“Acquirer 1”) and Mr. Hari Prakash Agrawal
(“Acquirer 2”) (hereinafter collectively referred to as “Acquirers”), have entered into Share
Purchase Agreement (“SPA”) with OSI India Holding A/S (“Seller”) for the acquisition of
7,500,000 (Seventy Five Lacs) Equity Shares (“Sale Shares”) collectively, of face value of
Rs. 10/- (Rupees Ten) each representing 47.41% of the total voting share capital along with
acquisition of control of the Target Company at a price of Re. 0.25 (Twenty Five Paisa) per
fully paid-up equity shares aggregating to Rs. 1,875,000 (Rupees Eighteen Lacs and Seventy
Five Thousand Only) payable in cash. As on the date of LoF, Acquirers collectively hold 100
(Hundred) Equity Shares representing 0.00% of the total voting share capital of the Target
Company in the joint demat account. Other than the shares held, Acquirers do not have any
interest in the Target Company. The Offer is not a result of Global Acquisition resulting in
indirect acquisition of Target Company.
3.1.3. The salient features of the two SPA dated July 11, 2017 are laid down as under:
SPA dated July 11, 2017 between the Acquirers and Seller for acquisition of control and
7,500,000 (Seventy Five Lacs) fully paid up Equity Shares of face value of Rs. 10/- (Rupees
Ten) each representing 47.41% of the total voting share capital of the Target Company at a
price of Re. 0.25 (Twenty Five Paisa) per share.
8
The total consideration for the sale shares is Rs. 1,875,000 (Rupees Eighteen Lacs and
Seventy Five Thousand Only).
Acquirers will complete the acquisition of Sale Shares and control over the Target Company
within one business day of expiry of period of twenty one working days from the date of
Detailed Public Statement subsequent to deposit of 100% of the Offer Consideration for
Takeover Open Offer of the Target Company in terms of SEBI (SAST) Regulations, 2011.
3.1.4. There is no separate arrangement for acquisition of control over the Target Company.
3.1.5. None of the Acquirers as mentioned above have been prohibited by SEBI from dealing in
securities, in terms of direction issued under Section 11B of the SEBI Act or under any of the
Regulations made under the SEBI Act, 1992.
3.1.6. None of the Acquirers as mentioned above are in the list of wilful defaulters of any bank,
financial institution, or consortium thereof in accordance with guidelines on wilful defaulters
issued by Reserve Bank of India.
3.1.7. Subsequent to the completion of Takeover Open Offer, Acquirers will either get themselves
appointed or their representatives on the Board of the Target Company.
3.1.8. The recommendation of the committee of Independent Directors as constituted by the Board
of Directors of the Target Company on the Offer will be published at least two working days
before the commencement of the tendering period, in the same newspapers where the DPS
was published and a copy whereof shall be sent to SEBI, BSE and Manager to the Offer and
in case of a competing offer/s to the manager/s to the open offer for every competing offer.
3.2. Details of the proposed offer
3.2.1. In accordance with Regulations 13(1) and 14(3) of SEBI (SAST) Regulations, 2011, Acquirers
made a PA on July 11, 2017 to SEBI, BSE and TC and DPS on July 18, 2017 which was
published in the following newspapers:
Publication Editions
Financial Express (English) All Editions
Jansatta (Hindi) All Editions
Mumbai Lakshdweep (Marathi) Mumbai Edition
Daily Prija Hitam (Telugu) Hyderabad Edition
The Detailed Public Statement is also available on the SEBI website at
www.sebi.gov.in; BSE website at www.bseindia.com; and the website of Manager to
the Offer www.corporateprofessionals.com;
3.2.2. Acquirers have made this Takeover Open Offer in terms of SEBI (SAST) Regulations, 2011
to the shareholders of GAEL to acquire upto 4,113,490 (Forty One Lacs Thirteen Thousand
Four Hundred and Ninety) fully paid up Equity Shares of Rs. 10/- each representing 26.00%
of the total voting share capital of the Target Company at a price of Re. 0.50/- (Fifty Paisa
Only) per fully paid up equity share (“Offer Price”), payable in cash subject to the terms and
conditions set out in the PA, DPS and this Letter of Offer.