PRESS RELEASE
In the matter of proposed acquisition of shares of CMC Limited : Grant of exemption under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997
Tata Consultancy Services Limited (TCS), an unlisted company and a subsidiary of Tata Sons Limited proposed to acquire 77,44,961 equity shares of Rs.10 each constituting 51.12% of the equity capital of CMC Limited (CMC) from Tata Sons Limited.
TCS made an application to SEBI seeking exemption from making open offer to the shareholders of CMC as required in terms of the Takeover Regulations on the ground that TCS is a subsidiary of Tata Sons (which holds 90% of the paid-up Equity Share Capital), and therefore the proposed acquisition is in the nature of inter se transfer of shares among "group companies", as defined in the MRTP Act and it would not result in a change of control of the target company.
The said application was considered by the Takeover Panel which recommended grant of exemption.
SEBI in terms of Regulation 4(6) of the Regulations has passed an order dated 29.03.2004, granting exemption, to TCS from making open offer with regard to the proposed acquisition of shares and voting rights of CMC.
The full text of the Order is available on the SEBI website at www.sebi.gov.in.