Sebi orders Colour Chem acquirer to make open offer

The over-stretched wait of around five years for the shareholders of Colour Chem Ltd (CCL) seems to be coming to an end as the capital market regulator, Sebi ordered the acquirer of CCL, Clariant International Ltd, a Sweedish company, to come out with an open offer for the minority shareholders of the CCL.

In an order Sebi chairman G.N. Bajpai asked the acquirer to come out with an open offer of 20 per cent for the minority shareholders by taking November 21, 1997 as the reference date to arrive at a price. Sebi chairman also asked the acquirer to pay interest to the shareholders at the rate of 15 per cent per annum to compensate the losses suffered by the investors for the delay in making the open offer.

Sebi order comes into force with immediate effect. Sebi directed the acquirer to make public announcement as required under Chapter III of the Takeover Regulations in terms of regulations 10 & 12 taking November 21, 1997 as the reference date for calculation of offer price. The public announcement shall be made within 45 days of passing of the order which was issued by the regulator on October 16.

Sebi also directed the acquirer to pay interest at 15 per cent per annum to the shareholders for the loss of interest caused to them from March 22, 1998 till the date of actual payment of consideration for the shares to be tendered in the offer directed to be made by the Acquirer.