Kolkata, Sep 17(UNI) In a bid to block any hostile takeover, Gujarat NRE Coke will float a rights issue with differential voting rights (DVR).
" The company board has approved the proposal for floating DVR rights issue, which is a prevention action against any takeover bid for securing coking coal assets," Vice-Chairman and Managing Director Arun Jagatramka told reporters after the company's annual general meeting.
After the rights issue the voting rights of the promoters will climb up to 51 per cent from the present 41 per cent. However, their holdings would remain at 41 per cent.
Mr Jagatramka said with the rights issue being pegged at Rs 1,000 per share, with premium of Rs 900, the minority shareholders were unlikely to participate in the float since the current share price of the firm was around Rs160.
Besides the promoters, the innstitutions investors together hold 41 per cent stake in the company, while the remaining 18 per cent was public float.
Mr Jagatramka said many steel firms were eyeing to secure coaking coal, a scarce commodity, as assets abroad.
UNI KDG KK/src1706