Lakshmi Machine Works Ltd announced that M/s. Rieter-LMW Machinery Limited, Coimbatore(RLM) is a Joint Venture Company wherein 50% of the paid up share capital are held by the Company and the remaining 50% is held by M/s. Rieter Machine Works Limited, Switzerland(Rieter).
Rieter have offered to sell their holding of 50% shares in the Joint Venture Company RLM to the Company. The Board of Directors of the Company at the Meeting held April 01, 2011 after considering various aspects have decided to accept the offer of Rieter.
The value of shares will be determined as on June 30, 2011. Once the process of disinvestment by Rieter is complete, RLM will become a wholly owned subsidiary of the Company.
LMW, founded in the year 1962, is today a global player and one among the three manufacturers of the entire range of Textile Machinery.
Rieter-LMW Machinery Limited (RLM) is a joint venture between M/s. Lakshmi Machine Works Limited, India and M/s. Rieter Machine Works Limited, Switzerland.
Enam Securities Pvt Ltd on behalf of Lakshmi Machine Works Ltd has issued this Post Buy Back Public Announcement to the Equity Shareholders / Beneficial Owners of the equity shares of the Target Company, which is in continuation of & should be read in conjunction with the Public Announcement ("PA") dated December 24, 2010 issued on December 27, 2010 & Letter of Offer dated January 31, 2011 ("LOF") regarding completion of Buy Back Offer is in compliance with Regulations 19(7) of the Securities & Exchange Board of India (Buyback of Securities) Regulations, 1998, as amended (Regulations").
A. The Buy back:
The Equity Shareholders in connection with the buyback of up to 11,08,606 fully paid up Equity Shares of Rs. 10 each by the Target Company through a tender offer method at a price of Rs. 2045 per Equity Share for an aggregate amount of Rs. 22671 lacs ("Buy Back Size") in accordance with Section 77A, 77AA & 77B of the Companies Act, 1956 & the Regulations. The number of Shares bought back constitute approximately 9.79% of equity share capital of the Company post Buyback.
The Buy back was effected through the tender offer method.
The Buy back offer was open from February 09, 2011 to February 24, 2011.
B. Details of the Buy back:
The total number of Equity Shares bought back under the Buy Back is 11,02,746 Equity Shares.
The total amount invested in the Buyback is Rs 22551.16 lacs.
The Company has bought back a total of 11,02,746 Equity Shares at a price of Rs. 2045 per Equity Share. The Registrar to the Offer i. e. S.K.D.C. Consultants Ltd, received 35 valid applications for 11,02,746 Equity Shares in response to the Buy Back Offer resulting in the subscription of approximately 99.47%. All the valid applications were considered for acceptance.
