Hayleys triggers mandatory buyout of 59% stake in Harischandra Mills

Hayleys PLC yesterday initiated a mandatory offer to acquire the remaining 1,140,654 ordinary voting shares, representing 59.42 percent of the issued shares of Harischandra Mills PLC, following its recent purchase of a 40.58 percent stake in the company.

Last week (October 17), Hayleys purchased 778,946 shares from Senthilverl Holdings (Pvt.) Ltd, at a price of Rs.3,300 per share, amounting to a total consideration of Rs.2.57 billion. 

The acquisition triggered an obligation under Rule 31(1)(a) of Company Takeovers and Mergers Code 1995 (as amended in 2003) to make an offer to all remaining shareholders.

Under the mandatory offer, Hayleys is offering Rs.3,300 per share, the same price paid for its initial acquisition, to all remaining shareholders of Harischandra Mills. 

The company stated that a detailed Mandatory Offer Document, including the offer period and other relevant information, would be forwarded to the shareholders within 35 days from the date of the obligation.

Hayleys currently holds 40.58 percent of Harischandra Mills and does not have any parties acting in concert regarding the acquisition.