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Sriram Needle board recast
Financial Dailyfrom THE HINDU group of publications
Friday, June 09, 2000
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Sriram Needle board recast
Our Bureau
CALCUTTA, June 8
NRB Bearings Ltd (NRB), consequent upon transfer of 23.10 lakh shares representing approximately 64 per cent stake in Sriram Needle Bearing Industries Ltd (SNBIL), has secured control, with effect from June 1, of the management of SNBIL, which has now be
come NRB's subsidiary.
According to a communication by SNBIL to stock exchanges, five members of its board vacated office and three NRB nominees have been inducted. The institutional nominee on the earlier board continues.
NRB entered into a share purchase agreement on February 9 with the promoters of SNBIL for acquisition of 45.78 per cent stake for a total consideration of Rs. 82,67,465. Afterwards, an open offer to acquire another 20 per cent stake from the other shareh
olders was made by NRB.
Even though the open offer price at Rs. 8 was Rs. 3 higher than the price for purchase from the promoters for 7,22,350 fully paid shares of Rs. 10 each, the valid response at 6.57 lakh shares fell 1.78 per cent short of the offer, which was for 7,22,350
fully paid shares of Rs. 10 each.
Under the share purchase agreement with SRF, Sriram Bearings, SRF Transnational Holdings, Xonix Enterprise and Lotus Finance & Investment, NRB bought 16,53,493 equity shares at a negotiated price of Rs. 5 each.
Under the arrangement, NRB had also agreed to extend an unsecured loan of Rs. 5.69 crores to SNBL. This loan will be used to replace the unsecured loan of the same amount provided earlier by SRF Ltd.
The Rs. 140-crore NRB is a joint venture between Nadella of France and Mr. T.S. Sahney. Currently, Nadella is a 50:50 joint venture between SNR Roulements and Torrington of the US.
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