Press Release
PR-103/2004May 7, 2004
In the matter of proposed acquisition of shares of White House Cotton Industries Ltd.: Grant of exemption under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997
S/Shri V Devraj, V Jaganathan, K Narayanaswamy, R Radhakrishnan, R Karthik, R Saravanan and K Venkitasamy (acquirers) propose to acquire 1,06,54,600 equity shares and voting rights of Rs. 10/- each representing 71.03% of the equity capital of White House Cotton Industries Ltd. (WHCIL) at a price of Re.0.25 per share.
An application was made to SEBI seeking exemption from making open offer to the shareholders of WHCIL as required in terms of the provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. It was stated that WHCIL has been consistently loss making from inception. WHCIL has been facing liquidity problems and has not been able to service its repayment obligations to banks and FIs. At the instance of IDBI, acquirers propose to acquire the entire equity held by promoters in the target company. It is further stated that the revival of the target company will improve profitability and help small investors.
The said application was considered by the Takeover Panel which has recommended the grant of exemption.
SEBI in terms of Regulation 4(6) of the Regulations has passed an order dated 30.04.2004, granting exemption, to the acquirers from complying with the provisions of Regulations 10 and 12 of the Takeover Regulations with regard to the proposed acquisition of shares and voting rights of WHCIL.
The full text of the Order is available on the SEBI website at www.sebi.gov.in
Mumbai
May 07, 2004
