Germany-based Robert Bosch, the world leader in diesel technology, has increased its stake in its Indian subsidiary, Motor Industries Company (Mico), by 9.2 per cent for Rs 1,300 crore.
The company had earlier made an open offer for 20 per cent stake in Mico for Rs 4,000 a share in May. This was followed by a revised offer of Rs 4,600 a share in the following month, possibly triggered by poor market response.The company was able to acquire only 9.2 per cent from the open offer, taking the total promoters stake to 70 per cent from 60.8 per cent.
The company has no plans to get delisted from the stock market, as according to Hieronimus,MD MICO, parent company Bosch has no intentions to raise thier stake beyond 80 per cent. “Our aim is to have an 80 per cent stake in both our companies (the other company being Bosch Chassis Systems) and not to get delisted,” added Hieronimus.
There was also a market buzz that Mico would come out with another open offer, which would carry a share price of Rs 5,000. This would have pegged the total buyback size to ovre $800 million, thus making it one of the largest buyback ever in history.
For the rest 10 per cent (which takes parent company share to 80 per cent), the company is unlikely to come out with a revised open offer in the near future
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